Hi Everyone! Its been a while since my last post, so lets dive in to the point, without losing time!
So what we are seeing here is a parabolic move with hype will end in a big crash!! When we look at the fundamentals we are still not able to see PE ratio due to earnings being negative and the PB is close to 20. It is a crazy thing to see that an manufacturing company(automotive, energy etc., however you would want to categorization it),which would have a high capital cost, would have it self priced at 20 times it book value!!! I would have hoped other fundamental ratios would have been great while seeing these two so bad. However the quick ratio being at 0.7 and debt to equity not showing good signs as well i do not believe price movement represents the "current" value of tesla!
And if we take a look at the technical side of things.... We could see that the price has been increasing with dropping volume and the RSI is over stretched.I believe it is the perfect time to take profits and watch it fall. There might be a little more upper movement but it is not worth taking the risk since in the near future i believe the price will be lower than where it is.
As always this is not an financial advice , this is just a thought!
Stay Safe
So what we are seeing here is a parabolic move with hype will end in a big crash!! When we look at the fundamentals we are still not able to see PE ratio due to earnings being negative and the PB is close to 20. It is a crazy thing to see that an manufacturing company(automotive, energy etc., however you would want to categorization it),which would have a high capital cost, would have it self priced at 20 times it book value!!! I would have hoped other fundamental ratios would have been great while seeing these two so bad. However the quick ratio being at 0.7 and debt to equity not showing good signs as well i do not believe price movement represents the "current" value of tesla!
And if we take a look at the technical side of things.... We could see that the price has been increasing with dropping volume and the RSI is over stretched.I believe it is the perfect time to take profits and watch it fall. There might be a little more upper movement but it is not worth taking the risk since in the near future i believe the price will be lower than where it is.
As always this is not an financial advice , this is just a thought!
Stay Safe
Comment:
As we expected the price has started to move towards its value. However there might be some bounces on the way, so there is a chance for a little upward movement before continuing down. But at this point, any entry point seems too risky. Trade at your own risk =)
Comment:
High everyone! I believe we have completed the bounce that we have anticipated and now we'll continue the downward movement in the upcoming days.
Do your own due diligence and stay safe!
Do your own due diligence and stay safe!
Stay safe=)