#Tesla tumbled as much as 7.2% on Monday amid a broader market slide. Shares remain roughly 20% higher year-to-date as the automaker’s mammoth 2020 rally continues into the new year.
The automaker’s soaring share price and stock offerings are fueling recursive growth,
Tesla can boost its fundamentals by funding new factories with stock sales. Improved deliveries then push shares higher and repeat the cycle.
Tesla closed down -68.830 at 811.190. Volume was 12% above average (neutral) and Bollinger Bands were 92% wider than normal.
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.
Summary
Tesla is currently 129.5% above its 200-period moving average and is in an upward trend.
Our volume indicators reflect moderate flows of volume into Tesla (mildly bullish).
Our trend forecasting oscillators are currently bullish on Tesla and have had this outlook for the last 35 periods.
Overall, the bias in prices is: Upwards.
A big black candle occurred.
This is bearish, as prices closed significantly lower than they opened.
If the candle appears when prices are “high,” it may be the first sign of a top.
If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance.
Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles.
During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.
