Tesla, Inc. (NASDAQ:TSLA) Stock Remains Strong
It has been a rough few months for Tesla (NASDAQ:TSLA). Just as it seemed that Tesla stock was ready to roar to permanent, new highs due to its successful ramp of Model 3 production and a hugely profitable third quarter, TSLA stock started moving in the opposite direction.
Ever since that post-earnings rally which pushed the shares to $375 in late 2018, Tesla stock has shed nearly 30% of its value. TSLA now trade hands for less than $270.
Why the big selloff of TSLA stock? There were various reasons for it. There are concerns that demand for the Model 3 is slowing after a big 2018 surge. International demand is a big question mark, too. There are also continued concerns about the company’s management and the departure of its top executives. Meanwhile, its competition is heating up, and the big profit it generated in Q3 wasn’t replicated in Q4. Finally, TSLA may swing back to a loss next quarter, and the Model Y didn’t live up to the hype.
Overall, there have been a plethora of headwinds which have weighed on Tesla stock over the past several months. But, much like other headwinds that have hit this stock before, they are largely much ado about nothing.
The big picture of Tesla stock remains favorable. The global electric-vehicle market continues to grow by leaps and bounds, and TSLA continues to be the most relevant and innovative player in that market. As long as that remains true, Tesla will remain on track to one day become the most important auto company in the world, delivering millions of EVs every year and raking in billions of dollars in profits.
The price of Tesla stock simply doesn’t reflect that future reality. As a result, the recent weakness of TSLA stock should be embraced, not avoided.
The Bottom Line on Tesla Stock
The two big ideas and trends supporting Tesla’s long-term growth outlook remain healthy. As long as they remain healthy, most other near-term headwinds that the company is facing are just noise. If this noise leads to downturns of Tesla stock (which is occurring right now), then that’s a buying opportunity. As a result I’m buying TSLA stock on this recent dip.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 308.84.
The projected upper bound is: 301.38.
The projected lower bound is: 243.37.
The projected closing price is: 272.37.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 17.7705. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 8 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 40.15. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 131 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -95. This is not a topping or bottoming area. The last signal was a buy 0 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 2 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed up 6.130 at 273.600. Volume was 13% below average (neutral) and Bollinger Bands were 16% narrower than normal.
Open High Low Close Volume___
269.690 274.970 266.300 273.600 6,908,224
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 279.99 304.10 316.17
Volatility: 47 59 75
Volume: 9,088,206 8,612,644 9,419,129
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
TESLA INC is currently 13.5% below its 200-period moving average and is in an downward trend. Volatility is Our volume indicators reflect volume flowing into and out of TSLA.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on TSLA.O and have had this outlook for the last 20 periods.