Tesla, Inc. (NASDAQ:TSLA) target to $420
Tesla Inc. closed just shy of $360 a share Tuesday, the highest since Aug. 8, as it bucked a larger sell-off in major indexes including the Nasdaq and Dow Jones Industrial Average.
Reaching that price could help placate investor concern about Tesla’s cash flow as it looks to sustain profitability by boosting Model 3 deliveries. Tesla has $920 million of debt due March 1, and the conversion price is $360. Though much may change before then, if its shares stay above $360, the electric-car company could pay off the obligation with stock instead of cash.
Tesla rose 0.3 percent to $359.70 per share on Tuesday. The Nasdaq, meanwhile, fell 4.9 percent, the biggest one-day slide for the benchmark since Oct. 24.
The company led by Chief Executive Officer Elon Musk posted its largest profit ever in the third quarter and appears to have put much of the drama of the Model 3 production ramp behind it. Last week, Musk sent an email to Tesla employees outlining top priorities that include stabilizing Model 3 production at 7,000 cars a week and working to improve costs so the company can build and sell the $35,000 version.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 401.46.
The projected lower bound is: 320.34.
The projected closing price is: 360.90.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 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 79.8778. This is not an overbought or oversold reading. The last signal was a sell 0 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 61.58. 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 60 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 148.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 6 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 14 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed up 1.210 at 359.700. Volume was 17% below average (neutral) and Bollinger Bands were 59% narrower than normal.
Open High Low Close Volume___
356.050 368.680 352.000 359.700 8,461,945
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 345.91 313.81 312.09
Volatility: 53 88 72
Volume: 6,085,026 9,812,640 9,148,859
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 15.3% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into TSLA.O (mildly bullish). Our trend forecasting oscillators are currently bullish on TSLA.O and have had this outlook for the last 28 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.