Tesla, Inc. (NASDAQ:TSLA) will report first quarter sales and production today

Tesla, Inc. (NASDAQ:TSLA) will report first quarter sales and production today

Tesla, Inc. (NASDAQ:TSLA) will report first quarter sales and production today

Tesla is probably about to report the largest drop in auto sales in the company’s history.That’s not a shock —Tesla faced some special circumstances last quarter. But it’s still a concern:

Tesla needs to keep its sales pace high to pay down its sizable debts.Tesla will report first quarter sales and production figures Tuesday, and Wall Street analysts expect them to be sharply lower than the 90,700 cars that the company sold and delivered to customers last quarter.

Analysts predict Tesla delivered just over 50,000 cars over the last three months.That’s still significantly more than what Tesla reported a year ago, when Model 3 production was just getting started. During that quarter, the company sold less than 30,000 vehicles.

But Tesla sales have never fallen so much quarter-over-quarter.A couple of circumstances are to blame for the decline.First, Tesla rushed to complete some sales before the end of last year so buyers could take advantage of a $7,500 federal tax credit, which lowered the amount people had to pay for Tesla’s vehicles. That tax credit has been cut in half for sales completed in 2019 — potentially making a Tesla a somewhat tougher sell for budget-conscious buyers.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 317.00.

The projected lower bound is: 259.03.

The projected closing price is: 288.02.

Candlesticks

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 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 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 4 rising windows in the last 50 candles–this makes the current rising window even more bullish.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 97.1245. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 7 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 53.74. 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 139 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 109.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 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 buy 2 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed up 9.320 at 289.180. Volume was 0% above average (neutral) and Bollinger Bands were 41% narrower than normal.

Open High Low Close Volume___
282.620 289.200 281.281 289.180 8,110,439

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

Moving Averages: 10-period 50-period 200-period
Close: 273.03 293.12 314.31
Volatility: 40 60 74
Volume: 8,062,258 8,986,734 9,243,141

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 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 8.0% 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 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 28 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.

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