As long as Tesla is above the 10-day mode as marked on the chart, the upside potential is the better odds way to look at the chart.
TSLA closed the gap which I marked "VISUAL GAP" in red from October when it gapped down on the release of the Model-D. Tesla had rallied in the face of a declining market up until that day, thanks to Chm Elon Musk's announcement about the upcoming "exciting news".
The large, green triangle is also on the 10-day MODE, which adds to the support from the "KEY HIDDEN EARNINGS" level where Tesla reported earnings (losses, actually, of 29 cents).
The volume histogram on the right also shows that there is more volume at the 240 level, which shows me that there are still shares that are accumulated in TSLA and in strong hands. The 265-272 zone is a target area, just because so little volume traded there and there was the swift drop from that level in September after the long wave of analyst upgrades after the August earnings report.
So, now that TSLA is oversold AND there is support underneath AND I could add that it has handled the big drop in the price of crude oil over the last 2 months. The low price of crude does hurt the sentiment of investors and those on the fence deciding whether to buy an "all electric vehicle". The savings equation doesn't look as favorable when gasoline prices are pushing multi-year lows. If prices fall back to where Obama took office at $1.60 a gallon, then I think it would put a cap on TSLA at the $200 level and a floor down around $150. To give TSLA a sense of valuation, it is currently trading at 10.7 times trailing 12-month sales, which is expensive, but relative to sales growing at high double-digits, it could easily grow into the current valuation in a few years.
Tim
11/24/2014 11:54AM EST (I started typing when this was $242, $244.43 last)
TSLA closed the gap which I marked "VISUAL GAP" in red from October when it gapped down on the release of the Model-D. Tesla had rallied in the face of a declining market up until that day, thanks to Chm Elon Musk's announcement about the upcoming "exciting news".
The large, green triangle is also on the 10-day MODE, which adds to the support from the "KEY HIDDEN EARNINGS" level where Tesla reported earnings (losses, actually, of 29 cents).
The volume histogram on the right also shows that there is more volume at the 240 level, which shows me that there are still shares that are accumulated in TSLA and in strong hands. The 265-272 zone is a target area, just because so little volume traded there and there was the swift drop from that level in September after the long wave of analyst upgrades after the August earnings report.
So, now that TSLA is oversold AND there is support underneath AND I could add that it has handled the big drop in the price of crude oil over the last 2 months. The low price of crude does hurt the sentiment of investors and those on the fence deciding whether to buy an "all electric vehicle". The savings equation doesn't look as favorable when gasoline prices are pushing multi-year lows. If prices fall back to where Obama took office at $1.60 a gallon, then I think it would put a cap on TSLA at the $200 level and a floor down around $150. To give TSLA a sense of valuation, it is currently trading at 10.7 times trailing 12-month sales, which is expensive, but relative to sales growing at high double-digits, it could easily grow into the current valuation in a few years.
Tim
11/24/2014 11:54AM EST (I started typing when this was $242, $244.43 last)
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