TSLA Stock: We have gathered the technical data on Tesla, Inc. (TSLA), and see some interesting trends in the stock’s behavior of late. They say the “soul” of a stock is best known by an examination of its behavior on the tape. With that in mind, consider how this stock has been acting as a clue to where it may be headed going forward.
TSLA has been trading in a bearish trend, based on the relative levels of its 50-day and 200-day simple moving averages. This suggests that the broad sum of capital flow in the stock has been generally negative over the recent period. In terms of the relative level of interest afforded this stock among active participants in the market, relative volume measures have been strong, indicating enthusiasm for the name by traders, investors, and money managers during the past month of action. This suggests something of the significance of other current technical measures as well.
For market timers, it’s also important to take measure of the relative level of recent lift or pressure in the stock is it overbought or oversold? For that, we turn to RSI and stochastic measures. The 14-day RSI stands at 58.27%. That shows that the stock, according to a traditional interpretation and usage of the RSI indicator, is not particularly predisposed to a reactive price movement based on this measure If we look at the stochastic measure, the raw data over the stock’s last month of action shows a score of 47.81%. Based on a raw data interpretation, this perspective doesn’t suggest either an overbought or oversold condition.
As professionals know, risk is best understood through a measure of volatility in an investment vehicle. In recent action, TSLA has made a move of -10.31 over the past month. Over the trailing year, the stock is underperforming the S&P 500 by -3.48%, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. The stock’s recent movement has come on a historical volatility score of 35.83%, which represents the standard deviation of returns of a theoretical long position from a mean price during that period. On a daily basis over the past month, the average true range of the stock, as expressed in percentage terms, is 2.7%. That should give you a pretty good sense of the level of risk implied in a short-term trading approach in the stock with a stop-loss in place.
The article first appeared in theusacommerce.com