Tesla, Inc. (NASDAQ:TSLA) stock slides to 4-month low

Tesla, Inc. (NASDAQ:TSLA) stock slides to 4-month low

Tesla, Inc. (NASDAQ:TSLA) stock slides to 4-month low

Tesla Inc. stock extended losses Tuesday after more analysts joined the chorus of Tesla doubters and criticized the Silicon Valley car maker’s recent decisions.

Tesla TSLA, -3.09%  shares fell 3.1% to close at their lowest since Oct. 22 and are down more than 13% in the past three sessions in the wake of company news that stoked demand fears. The stock fell by as much as 5.4% on Tuesday.

Chief Executive Elon Musk on Sunday tweeted that the Model Y unveiling is set for March 14 and last Thursday Tesla announced it was offering a $35,000 Model 3 and shifting worldwide sales to online only.

Adam Jonas at Morgan Stanley said in a note Tuesday that investor feedback on Tesla has been “firmly in the ‘something’s wrong’ camp rather than ‘this is a great buying opportunity’ camp.”

“You can put us in the ‘something just doesn’t add up’ camp,” he said. Recent events “are communicating to investors a sense of growing tension in the organization.”

Investors have questioned why Tesla hasn’t raised capital yet, and whether the company’s balance sheet is strong enough to weather cash burn and more debt that is coming due. They are also homing in on the risks attached to online-only sales, Jonas said.

The sooner-than-expected $35,000 Model 3 announcement, “rather than reflecting dramatic progress on manufacturing and distribution costs, likely reflects the need to replenish cash after the convert repayment, perhaps exacerbated by the weak first two months of U.S. sales,” the Barclays analysts said. Tesla made its biggest-ever bond payment on Friday on $920 million of convertible debt and likely used up nearly a quarter of its cash, as The Wall Street Journal reported.

Tesla shares have lost 17% in the past 12 months, compared with losses of 17% for Ford Motor Co. F, -0.45%  and contrasting with gains of 4.1% for General Motors Co. GM, +0.08%  and 2.5% for the S&P 500 index SPX, -0.11%  in the same period.

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 314.28.

The projected upper bound is: 312.62.

The projected lower bound is: 238.20.

The projected closing price is: 275.41.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 12.7080. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 2 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 36.06. 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 120 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 -204.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 2 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 1 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed down -8.820 at 276.540. Volume was 122% above average (neutral) and Bollinger Bands were 37% narrower than normal.

Open High Low Close Volume___
282.000 284.000 270.100 276.540 18,764,740

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 297.64 312.63 316.33
Volatility: 69 75 75
Volume: 11,747,841 8,372,241 9,254,732

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.

Summary

TESLA INC is currently 12.6% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect moderate flows of volume out of TSLA.O (mildly bearish). Our trend forecasting oscillators are currently bearish on TSLA.O and have had this outlook for the last 9 periods.

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