Tesla (TSLA) is surging to a new, near-record high on investors buying big into the stock following the announcement that it will be added to the S&P500.
Even Warren Buffett is rumored to be buying into Tesla.
Over the last two days, since it was confirmed that Tesla will be added to the S&P500, the stock has been surging.
It went up 8% yesterday, and it is extending its gains today by now trading 10% up intraday.
The result is that Tesla added now around $80 billion in valuation to its stock over two days.
On top of the announcement of the S&P500 inclusion, Tesla’s stock was also helped by a price target increase from Morgan Stanley.
However, it’s hard to justify such a massive increase in valuation from just this new information.
An interesting theory is that some big investors are now heavily investing in Tesla, and a particularly interesting theory is that famed investor Warren Buffet might be investing big.
Frank Peelen found that about 50 million Tesla (TSLA) shares have disappeared into the hands of currently unknown investors based on the 13F filings, which disclose large ownerships:
1/16— Frank Peelen (@FrankPeelen) November 18, 2020
Thread on Berkshire Hathaway and Tesla.
Yesterday, I pointed out in this quoted thread that, based on data I gathered from 13F filings, a large number of TSLA shares seem to have gone missing during Q3, to the tune of 100M shares. https://t.co/FXnCX22geQ
This is particularly interesting in the context of Berkshire Hathaway, Warren Buffett’s investment firm, filing for a confidential investment in a new company that it didn’t want to disclose in order to not overly affect the market.
The new investment could be worth around $11 billion.
An investment of that size would most likely result in a more than 5% ownership in most companies.
Tesla, Inc., formerly Tesla Motors, Inc., designs, develops, manufactures and sells fully electric vehicles, and energy storage systems, as well as installs, operates and maintains solar and energy storage products.
The Company operates through two segments: Automotive, and Energy generation and storage.
The Automotive segment includes the design, development, manufacturing, and sales of electric vehicles.
The Energy generation and storage segment includes the design, manufacture, installation, and sale or lease of stationary energy storage products and solar energy systems to residential and commercial customers, or sale of electricity generated by its solar energy systems to customers.
The Company produces and distributes two fully electric vehicles, the Model S sedan and the Model X sport utility vehicle (SUV). It also offers Model 3, a sedan designed for the mass market.
It develops energy storage products for use in homes, commercial facilities and utility sites.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 540.99.
The projected lower bound is: 437.10.
The projected closing price is: 489.05.
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 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black 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 75.4142. This is not an overbought or oversold reading. The last signal was a sell 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 67.67. 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 sell 54 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 227.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 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 1 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed up 45.030 at 486.640. Volume was 100% below average (consolidating) and Bollinger Bands were 34% narrower than normal.
Open High Low Close Volume 448.350 496.000 443.500 486.640 75,325
Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 427.34 423.13 264.11 Volatility: 79 79 109 Volume: 26,046,860 46,954,004 73,099,312
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 84.3% 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 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 0 periods.