Tesla, Inc. (NASDAQ:TSLA) the only company that can actually produce and sell electric cars
Tesla shares popped as a noted short seller, Andrew Left of Citron Research, said he is now betting on the stock ahead of the company’s earnings report on Wednesday. Left’s firm has held a short position on the stock for more than two years, and he confirmed he is still suing both Tesla and CEO Elon Musk.
The shares closed up 12.7 percent on the day at $294.14 a share, as the rest of technology-related stocks were under heavy pressure.
“Citron is long Tesla as the Model 3 is a proven hit and many of the TSLA warning signs have proven not to be significant,” said Left in a blog post Tuesday. “Plain and simple – Tesla is destroying the competition.”
Tesla stock has had a volatile year thus far, swinging as much as 20 percent down in October after rising as much as 20 percent in August. Shares of Tesla got a boost from Musk settling fraud charges with the Securities and Exchange Commission on Sept. 29, which brought to a conclusion a saga that began in early August.
Another activist fund declared Tuesday it was buying Tesla stock ahead of the company’s earnings report, with Richard Pearson’s Mox Reports saying in a tweet that he thinks “numbers will be blowout.” Pearson said shares of Tesla will go above $300 after the earnings report.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 297.26.
The projected upper bound is: 334.07.
The projected lower bound is: 251.72.
The projected closing price is: 292.89.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
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 24 white candles and 26 black candles for a net of 2 black 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 4 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 53.9035. This is not an overbought or oversold reading. 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 55.80. 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 31 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 8 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 4 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed up 33.190 at 294.140. Volume was 86% above average (neutral) and Bollinger Bands were 3% wider than normal.
Open High Low Close Volume___
263.870 297.930 262.100 294.140 19,027,752
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 265.49 291.89 311.65
Volatility: 85 92 71
Volume: 9,199,107 10,200,458 8,747,000
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 5.6% 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 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 11 periods.
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