Teslamotors
Tesla Analysis + PredictionsTesla is going to be trailing with some negative correlation at around a $315 price point. Tesla as a whole has been undervalued lately though as a stock due to short bets against Tesla's company. Numerous Wall Street analyst don't seem to be seeing positive growth for Tesla. This is likely the reason the company is transferring to private ownership. With many people concerned over Tesla's stock price and all the news surrounding shortening, it likely prevents Elon Musk from continuing growth or increasing morale for its corporate culture.
$TSLA | Heading Lower | Counter Trend MoveHello Traders,
Model suggests further decline in in Tesla. This is a counter trend move so any of the following targets can have a strong reaction and start a reversal in price. Idea becomes invalidated if new high is created, which is common with counter trend moves.
Bullish Before EarningsKey points
- Started parabolic run Feb 2016.
- Found heavy support at the 61.8 fib extension
- Down -20% this year, putting it in bear territory.
Last report, Tesla beat estimates virtually across the board. Elon predicts profitability Q4. Options are implying a 8-10% move up or down which is huge, larger than the usual 5% shift. Notice how the 78.6 extension has served as heavy resistance and we've failed to break $325 three times.
Decreasing volume and MACD crossover could give bulls momentum for a breakout with a $315 target. I would expect a correction soon after however, and generally sideways action until Q4 when the most important earnings report is released, going into 2019. I don't see it going higher than $315 short-term since weekly chart is bearish. Also, multiple failed retests and lower highs this month. Trade war prospects significantly impact Tesla's bottom line, and investors are showing caution based on technicals.
Bottom line
Cautiously Bullish (short-term)
Entry: $300
Exit: Sell 25% at $307, 33% at $310 and let rest (58% long) ride until signs of bearish reversal.
Stop loss: $296
Tesla Elliott Wave Analysis: Correction Sill In ProgressHello Traders,
In this Elliott Wave Analysis, we will have a look at Tesla in the 1-hour timeframe.
Tesla ended the cycle from 04/02/18 low (245.19) at the peak of 06/18/18 (373.85) in blue wave (1). Below from there, the stock is in the progress of correcting the cycle from 04/02/18 low in 3-7 or 11 swings lower in blue wave (2). The internals of blue wave (2) pullback is unfolding as an Elliott Wave double correction where red wave W ended at 07/05/18 low (296.05).
The internals of red wave W unfolded as a flat structure, where it ended black wave ((a)) at 06/26/18 (325.54), black wave ((b)) pullback at 07/02/18 peak (366.85) and black wave ((c)) of red wave W at 07/05/18 low (296). Up from there, it ended red wave X pullback at 07/10/18 peak (329.44). Below from that peak, it ended blue wave (w) at 07/24/18 low (292.35) and blue wave (x) pullback at 07/26/18 peak (310.63).
Near-term focus remains towards the area of 272.92-264.22, which is 100%-123.6% Fibonacci extension area of blue wave (w)-(x) before a reaction higher can be seen. As long as the pivot at 329.44 peak stays intact, we expect it to extend lower as the right side remains still to the downside.
Tesla Stock: $300 Short TargetPeople love to be overwhelmingly critical of Tesla Motors, especially given yesterday's analyst call. However, Tesla is seemingly going to expand throughout 2nd quarter 2018. Even given how much money they burnt, they still technically surpassed revenue expectations and are a growing car company. Given where electric cars are heading as well as the moderate success of the Roadster and Model S, it is unreasonable to consider Tesla a failing company. The continuous bidding against it shows some short biases.
tesla on the brinkFounded by Elon Musk, the company, has some rather concerning fundamentals. Don’t get me wrong, electric vehicles are the future; we need renewable sources of energy before the world reaches peak oil. Big Energy companies are slowly moving away from oil as a source of energy we are witnessing electric cars solar panels pop up everywhere the future is here and it is happening. The energy sector is changing but we shouldn’t get carried away. If you would indulge me for a few pages I will give you some numbers and you can decide for yourself whether one should be cautious or not. The charts I will put up in this report were obtained from the company’s earnings reports.
TESLA Bearish Scenario. Tesla share price is still trading into a bearish consolidation pattern. The neckline of the bull trend, now an important resistance, has rejected again the bulls. This suggests that the scenario previously depicted still stands. A current entry short at around $345 with a stop in $364 seems like a good risk-reward strategy.
Good luck fellow traders