Electric vehicle leader Tesla ( TSLA) is scheduled to report its latest quarterly numbers after the close of trading Wednesday. In our last review of TSLA on September 26 we were bearish on the stock. Let's check and see if the stock looks more appealing after its recent decline.
In this daily bar chart of TSLA, below, we can see that our bearish call in late September was the right call. Prices have been holding the $210 area in recent days which is the same area as the lows in May and June. Prices may hold this area again but the clues are not super strong.
Prices are trading below the declining 50-day moving line and below the declining 200-day line. The On-Balance-Volume (OBV) line has softened the past two months-plus but is not as weak looking as the price line. The Moving Average Convergence Divergence (MACD) oscillator is bearish but starting to narrow.
In this weekly Japanese candlestick chart of TSLA, below, we can see a potential harami pattern. I use the word potential as the pattern still needs a bullish candle for confirmation. The slope of the 40-week moving average line is still negative. The weekly OBV line is still pointed down and the MACD oscillator is bearish.
In this daily Point and Figure chart of TSLA, below, we can see a potential upside price target in the $263 area.
In this weekly Point and Figure chart of TSLA, below, we can see that the software is projecting a downside price target in the $101 area.
Bottom line strategy: I have no special knowledge of what TSLA is going to report to shareholders. I have no special knowledge of what might get tweeted. The charts are mixed but the bigger risk is for still lower prices in the weeks ahead. I would stand aside ahead of the numbers.
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