Tesla, Inc. (NASDAQ:TSLA) under pressure from Wall Street on concerns about demand for its vehicles

Tesla, Inc. (NASDAQ:TSLA) under pressure from Wall Street on concerns about demand for its vehicles

Tesla, Inc. (NASDAQ:TSLA) under pressure from Wall Street on concerns about demand for its vehicles

Tesla Inc. TSLA, +0.27% shares fell more than 4% in late trading Monday, poised to close at their lowest since February 2016 and extending their losing streak to a third session. Tesla has been under pressure from Wall Street on concerns about demand for its vehicles and the company’s financial health.

On Sunday, Chief Executive Elon Musk said the next vehicle in the company’s lineup, the crossover SUV Model Y, would likely be built in California rather than in Nevada. Tesla shares have lost 47% this year, versus gains of 9% and 6% for the S&P 500 index SPX, -0.28% and the Dow Jones Industrial Average DJIA, +0.02% 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 233.78.

The projected upper bound is: 198.32.

The projected lower bound is: 155.82.

The projected closing price is: 177.07.

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 24 white candles and 26 black candles for a net of 2 black candles.

An engulfing bearish line occurred (where a black candle’s real body completely contains the previous white candle’s real body). The engulfing bearish pattern is bearish during an uptrend. It then signifies that the momentum may be shifting from the bulls to the bears.

If the engulfing bearish pattern occurs during a downtrend (which appears to be the case with TESLA INC), it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle’s real body.

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 12.7345. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 4 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 20.46. This is where it usually bottoms. 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 buy 24 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 -102.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 4 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 14 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed down -6.190 at 178.970. Volume was 28% above average (neutral) and Bollinger Bands were 80% wider than normal.

Open High Low Close Volume___
185.510 186.680 176.992 178.970 13,060,728

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

Moving Averages: 10-period 50-period 200-period
Close: 192.02 244.77 294.68
Volatility: 40 55 71
Volume: 15,157,447 11,485,473 9,632,452

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 39.3% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect very strong flows of volume out of TSLA.O (bearish). Our trend forecasting oscillators are currently bearish on TSLA.O and have had this outlook for the last 35 periods. Our momentum oscillator is currently indicating that TSLA.O is currently in an oversold condition.

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