Technical analysis of Tesla 1D chart (21Aug22) - has Tesla peaked for now?

-
Technical Analysis of Tesla Stock

Note that I recommend a fundamental analysis of any company before we consider using the technicals to guide our entries.  While I am bullish about Tesla's fundamentals, here is my outlook for the coming days.

Summary of Tesla as of 21 Aug 2022

From the info, we can establish the following:
  • Tesla looks to be ranging around $900 region in the last few days.
  • Tesla is away from the 52-week low of 620.57 & high of 1243.49.
  • The average trading volume of Tesla was 30.03M

1D Chart of Tesla as of 21Aug22

From the above setup, here are my observations:
  • Stochastic has started a downtrend
  • MACD's downtrend was confirmed by the crossover after Friday (19Aug22).  
  • The volume of Tesla for the last week starting from Monday (15 Aug 22) was 29.79M, 29.38M, 22.92M, 15.83M & 20.42M.  The trading volume of each day was under the average of 30.03M.  This reveals the loss of "strength/momentum of the trend".
  • My 3 EMA lines are starting to merge - a sign of trend change (but yet to).  
  • MA50 is showing bullish and MA200 is showing bearish. 
  • Based on the charts, more downside is expected.  As per mentioned, it is not about Tesla's fundamentals or its excellent production ramp up, it is just the macro forces weighing in on the market.  
Technical Analysis by investing dot com as of 21 Aug 2022

From the technical analysis above, here are the observations based on 1D:
  • Moving Average - still, a buy (7) as compared to (5) showing a sell
  • Technical Indicators - still, a buy (4) as compared to (3) recommending a sell.
  • From the above, there is a ceiling of around 911.

Conclusion
After I compile the various technical findings, I lean towards a more "bearish" outlook for Tesla in the coming week, especially when S&P500 (1D chart) looked to have peaked and should see a reversal soon.  As always, let us do our respective due diligence before we invest.

Comments

Post a Comment

Popular posts from this blog

List of Top Dividend Stocks (updated as of 31 Dec 2021)

-
Image
This list some of the top dividend stocks from various countries namely, Hong Kong, China, Japan, Singapore, Australia, UK & USA .  I have also listed the top dividend stocks of the world. Considerations before investing Some of the companies listed have mind boggling dividend payout.  Please kindly do your due diligence on the respective companies before investing .  Do also research on the withholding tax, dividend related tax and local tarrifs that will apply.  For a Singaporean, my recent dividend receipt per $AAPL share is USD$0.15 (instead of USD$0.22) as a 30% withholding tax was applied.  I will also need to declare the dividend for my personal income tax submission too.  Do check with your brokerage for more details.  In the end, the returns should beat the current inflation (with tax provisions made). It would be typical for us to zoom into the stocks offering the biggest dividend payout but let us do our due diligence and research into ...
Read more

Websites I use for my trade setup - Part 4 of 4 (03Dec2021)

-
Image
After I got into investing, I started to research various investing gurus. It is no surprise that I found myself attracted to value investors like Warren Buffett, Charlie Munger, Li Lu, Mohnish Pabrai, Guy Spier and Nick Sleep. I have also read up on Chamath Palihapitiya and Ray Dalio. Over time, I saw the success of their investments and started to follow their investments, learning their investing philosophies along the way. We  should not be following the investors blindly  just because they are successful.  We need to find an investing strategy that fit our goals, our personality, our investment time horizon and risk-reward ratio . If we are willing to research before we buy our mobile phone, car or homes, let us be willing to do the necessary research coming to investments. With managed risks, we would be able to invest with better confidence. 4. Dataroma.com Dataroma is a website that tracks the 13F filings of the top 73 super investors. <From Investopedia> Th...
Read more

My interpretation of 10 commandments of investing management by Mohnish Pabrai

-
Image
Mohnish Pabrai is one of my favourite value investors.  He shared a relationship with Warren Buffett and Charlie Munger from Berkshire Harthaway.  $BRK.B, $BRK.A. Mohnish Pabrai Pabrai Funds portfolio as of Q4/2021 This was the collection of his 10 commandments coming to investing.  The source was  https://www.gurufocus.com/news/753022/mohnish-pabrai-talks-about-the-10-commandments-of-investing  and I have added my own thoughts in red italic fonts. Thou shall not skim off the top Pabrai thinks the fee structure in wealth and asset management is wrong. Most money managers are sinners. He takes issue with the fixed fee on assets under management. He specifically highlighted some original practitioners, Warren Buffett, who ran a 0/6/25 structure, and Munger, who ran a 0/33 type of structure. That means a 0% management fee and either 25% above a 6% hurdle or a 33% fee above a 0% hurdle. Personally, we should be rewarded with after delivered "agreed" results. There ...
Read more