To The Moon

Tesla, the world’s EV leader, and legacy automakers that had been spending at breakneck speeds to build their electric car businesses, are now taking a more cautious approach to investments.

The Tesla stock price gained 0.664% on the last trading day (Friday, 3rd Nov 2023), rising from $218.51 to $219.96. It has now gained 4 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. During the last trading day the stock fluctuated 3.65% from a day low at $218.40 to a day high of $226.37. The price has risen in 7 of the last 10 days and is up by 3.76% over the past 2 weeks. Volume fell on the last day by -5 million shares and in total, 118 million shares were bought and sold for approximately $25.96 billion. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.

The stock lies in the middle of a very wide and falling trend in the short term and further fall within the trend is signaled. Given the current short-term trend, the stock is expected to fall -7.57% during the next 3 months and, with a 90% probability hold a price between $181.17 and $243.91 at the end of this 3-month period.

When Tesla unveiled its results for its third quarter, analysts and the financial press mostly focused on how far the numbers fell short of the already negative forecasts. The pre-Halloween report indeed uncorked one of the year’s most ghoulish surprises, given that few enterprises in the annals of financial markets have inspired the kind of unbridled optimism with which Wall Street has showered the EV giant.

Tesla posted its lowest quarterly earnings per share in two years at 66 cents, a figure that lagged consensus estimates by 10%. The stunningly bad numbers spooked investors.

TSLA Signals & Forecast

There are mixed signals in the stock today. The Tesla stock holds a buy signal from the short-term Moving Average; at the same time, however, the long-term average holds a general sell signal. Since the longterm average is above the short-term average there is a general sell signal in the stock giving a more negative forecast for the stock. On further gains, the stock will meet resistance from the long-term Moving Average at $239.41. On a fall, the stock will find some support from the short-term average at $207.91. A break-up through the long-term average will give another buy signal, while a fall below the short-term average will add another sell signal and strengthen the general signal. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). A buy signal was issued from a pivot bottom point on Monday, October 30, 2023, and so far it has risen 11.45%. Further rise is indicated until a new top pivot has been found. Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely.

The ultimate guide for first-time investors: How to buy TSLA stock and grow your wealth.

Support, Risk & Stop-loss for Tesla stock

Tesla finds support from accumulated volume at $212.08 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

This stock may move much during the day (volatility) and with a large prediction interval from the Bollinger Band this stock is considered to be "high risk". During the last day, the stock moved $7.97 between high and low, or 3.65%. For the last week, the stock has had daily average volatility of 4.85%.

Trading Expectations (TSLA) For The Upcoming Trading Day Of Monday 6th

For the upcoming trading day on Monday, 6th we expect Tesla Inc. to open at $221.58, and during the day (based on 14 day Average True Range), to move between $209.36 and $230.56, which gives a possible trading interval of +/-$10.60 (+/-4.82%) up or down from last closing price. If Tesla Inc. takes out the full calculated possible swing range there will be an estimated 9.64% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at $220.11 (0.07%) than the support at $212.08 (3.58%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.

Insiders are very positive buying more shares than they are selling in Tesla

In the last 100 trades there were 2.53 million shares bought and 502.82 thousand shares sold. The last trade was made 9 days ago by Baglino Andrew D who sold 10.5 thousand shares. The large amount of stocks bought compared to stocks sold indicate that the insiders believe there is a potential good upside. In some cases larger purchases can be explained by due date for stock options.

Is Tesla Inc. stock A Buy?

Tesla holds several positive signals and we believe that if you are able to buy during any dips in the next couple of days or weeks, then you will be profitable in the mid to long term. We, therefore, hold a positive evaluation of this stock. Target price to buy is at US$181 price level.