Tesla, Inc. (NASDAQ:TSLA) Stock’s surge cements Elon Musk’s big turnaround
Tesla shares on Thursday surpassed the $400 mark for the first time ever, putting a proverbial exclamation point on what could be called a turnaround year for the electric carmaker, and its Chief Executive, Elon Musk.
Tesla’s shares rose 2.8%, to close Thursday at $404.04, giving the stock a boost of more than 21% for the year. Some of the credit for Tesla’s latest gains was pinned on a Wednesday report that the company is considering cutting the price of the Model 3 cars it makes at its Gigafactory in China by at least 20% next year in an effort to spur sales in what is seen as one of Tesla’s most-important markets outside of the U.S.
“We believe 2020 is a pivotal year for Tesla to double down on China with Gigafactory 3 and demand ramping,” said Dan Ives, managing director at Wedbush Securities. “Musk should get a ton of credit. Wall Street is showing optimism about Europe demand and China front and center and if (Tesla is) successful, the stock likely goes much higher.”
And Tesla’s latest share gains edged its stock price closer to the $420 mark. That price has a special place in Tesla’s history, because it was the per-share amount Musk used when he announced plans to take Tesla private in August 2018. That tweet, which also included Musk saying he had “funding secured” to take Tesla private, started off several months of controversy over Musk’s role as Tesla CEO, and which colored the company’s performance throughout the rest of last year, and a cast shadows over Tesla, and Musk, as 2019 began.
Less than two weeks after Musk said he wanted to take Tesla private, Musk gave an emotional interview with the New York Times that left many questioning his mental state, and sent investors into sell mode with their Tesla stock. Not long after that interview Musk changed his mind and said Tesla would remain a public company. Musk followed that decision up with an appearance on the Joe Rogan Experience podcast where he smoked what was said to be a marijuana-laced cigarette.
But, there was more to come.
Cave diver Vernon Unsworth sued Musk for libel and slander over Musk calling Unsworth “pedo guy” on Twitter. (In early December, a jury in Los Angeles determined that Musk’s comments didn’t defame Unsworth.) In September 2018, the U.S. Securities and Exchange Commission sued Musk for fraud over his tweets about taking Tesla private and sought to remove him from his CEO Job. Two days later, Musk settled the case, as he agreed to step down as Tesla’s board chairman for at least three years, and he and Tesla each paid the SEC a fine of $20 million.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 335.86.
The projected upper bound is: 436.36.
The projected lower bound is: 378.10.
The projected closing price is: 407.23.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 1 black candles for a net of 7 white candles. During the past 50 bars, there have been 32 white candles and 17 black candles for a net of 15 white candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 6 rising windows in the last 50 candles–this makes the current rising window even more bullish.
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 91.1438. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 13 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 80.34. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 18 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 164.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 13 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 buy 5 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed up 10.890 at 404.040. Volume was 120% above average (neutral) and Bollinger Bands were 57% wider than normal.
Open High Low Close Volume___
397.320 406.850 396.500 404.040 18,120,308
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 365.27 324.10 260.20
Volatility: 36 60 58
Volume: 10,575,017 9,227,884 9,271,693
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 gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
TESLA INC is currently 55.3% above its 200-period moving average and is in an upward 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 very strong flows of volume into TSLA.O (bullish). Our trend forecasting oscillators are currently bullish on TSLA.O and have had this outlook for the last 2 periods. Our momentum oscillator is currently indicating that TSLA.O is currently in an overbought condition.
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