TSLA Tesla Weekly and Monthly Charts; Overbot; Rising Wedge; Negative Divergence Developing

Tesla, the glorified golf cart company, is likely singing its swan song this year. The parabolic rocket ship ride for TSLA price is truly one for the record books and congratulations to anyone that believed in the stock. Keystone stays away from psycho stocks. Nonetheless, a lot of people are invested in, and follow, Tesla, religiously. It is important from the perspective of gauging the demand of electric cars as well as the progression of autonomous cars.

Speaking of which, where are those self-driving cars? Three years ago, America was told that autonomous cars are right around the corner. What a bunch of garbage. When is the lat time you heard a news story on autonomous cars? It has been a while. No one talks about it anymore. Keystone has been involved with complex engineering projects all over the world and there is one truism that everyone must realize. It takes 20% of the money to take a complex engineering project to 80% completion and then it takes the other 80% of the money to finish the last 20%.

This is why you saw all the hype about self-driving cars a couple years ago. The easy stuff is done. The technology works and self-driving cars are tested on the roadways now; the bright sunny perfect-day roadways. The one auto-driving car operating at night killed a pedestrian crossing the street in the dark. A Tesla owner was decapitated from watching a movie while in the autonomous setting which is really not self-driving, it is more of a driver assist. Tesla had to modify their promotion materials to make sure people know that it is not a fully autonomous vehicle.

There is a long way to go for autonomous vehicles for public use and then an acceptance curve would have to occur after that. It is not proven yet how these vehicles can operate in wind, hail, snow, sleet, ice, etc... A comical aspect is why on earth would you want an autonomous car if you have to run to the store for milk, bread and toilet paper? Now, you jump in the car, fly down the road and back in 15 minutes. Do you really want a fancy car where you sit in it, ask it to drive you to the store, it slowly maneuvers its way there, and probably will have to be programmed to follow the speed limit by future regulations. Seems like the quick run to the store and back would be a half-hour ordeal with an autonomous car. Good luck wit dat, as they say in Brooklyn.

The China sales are helping Tesla stock price. The filthy communists are up to their standard games and no doubt likely have a duplicate Tesla factory already built or in progress simply learning and repeating everything done at Tesla's facility. Once the stealing Chinese have their duplicate factory running, they will begin hassling Tesla. Regulators will be sent into the factory and start finding violations and shutting down the facility for a few days at a time. The communists will then screw Tesla out of the picture. Are Americans, and CEO Musk, really that dumb after all these years? Yes, by the looks of it. One by one, the filthy commies took our industries away, textiles, steel, autos, etc.., using the same rule book. Thus, the Tesla sales in China are likely something that will only last a year or two then fizzle.

Interestingly, Musk has to understand this so either he plans on skating out of Tesla say over the next year before the chit goes down in China, or, he is stupid and content laying in bed with the Beijing leadership convinced that all is fine and the communists are his best friends.

The funny aspect of electric vehicles is that fossil fuels generates the electricity that is used as their fuel. Thus, people thinking they are environmental do-gooder's are polluters like everyone else. Natural gas is a cleaner and more superior way to go with alternative vehicles. Keystone rode in a propane-powered taxi cab back in the 1980's. People do not understand that natural gas technology for vehicles has been around for over a century. Existing automobiles can be converted to natty gas. The fear among people is the explosive nature of natty but people became use to handling gasoline. Existing gas stations could also serve as fueling hubs for natty gas vehicles and the infrastructure jobs it would create would put back to work all able-bodied men, and ladies, that want to work.

Politicians always want to be known as the father of something. Al Gore tried to bill himself as the Father of the Internet but he would need help to turn his computer on. Emperor Obama and King Trump have both blown it. They could have ushered in the age of natty gas vehicles and be known as the Father of Natural Gas. It is a no-brainer. Musk knows that natty gas vehicles are superior but never says one peep about them. Of course he doesn't because all his eggs are in the electric car camp. People always talk their own book.

The weekly chart shows all the standard topping aspects four weeks ago; overbot conditions, a rising wedge pattern and negative divergence (red lines). Price retreats for the last three weeks but the MACD line remains long and strong on the weekly basis. Thus, price would be expected to come back up for a matching or higher high on the weekly basis, perhaps in the week or two ahead, and at that time, the MACD will likely go neggie d and begin a multi-week down move for TSLA. The upper band is violated so the middle band at 968, and rising, is on the table.

The purple box on the weekly shows the ADX confirming that the move higher in TSLA is a strong trend since the end of last year, and it continues. However, note how for this extreme parabolic rise in price, the ADX is actually lower than back in February. The trend higher is strong but it may be starting to peter out (which would be expected with the chart starting to set up with neggie d). The Aroon green line is overbot and red line oversold both hinting that a bearish direction will occur ahead. So TSLA price will likely float higher over the next week or two to use up the juice available from the MACD. At that time, the MACD will likely negatively diverge and a multi-week top will be in place for TSLA.

The monthly chart shows negative divergence over the 7-year period with all the indicators (red lines) except for the MACD and histogram (green lines). The negativity on the monthly chart will gel together with the negativity on the weekly chart to create that multi-week pullback, however, TSLA price then should come up again for a matching or higher high on the monthly basis. At that time, the long-term (months and perhaps years) top would be in for TSLA. If a couple jog moves occur say down this month, then up in September, perhaps the MACD may not be neggie d, so down in October but back up again in November, and the MACD on the monthly will likely be neggie d by then, and the long-term top will be in. So Tesla is likely singing its swan song this year but the long-term top has a slight (emphasize very slight) chance to slip into January or February. TSLA could top out on the monthly basis as early as September/October, taking the dive off the high tower only a month or two from now.

Judging by the charts right now, Tesla will likely rally for a week or two back up near the prior highs. The weekly chart will then be in full neggie d so TSLA price willdrop for several weeks say from mid-August into mid or late September. Then price should rally again back up to the highs, and if the MACD on the monthly goes neggie d, the long-term top is in, so let's say that will be placed in the September to December time frame. It can be identified exactly as the charts progress. Keystone has not played TSLA stock in a while and does not plan to. The shorts, that have been bludgeoned beyond recognition over the last few years, will finally have their day in the sun when the weekly chart tops out in a week or two. But they must not be greedy since TSLA stock will recover on that monthly basis.

The ARKK ETF follows the same pattern as TSLA which is no surprise since Ark Investment Management owns a boatload of Tesla stock and CEO Catherine Wood often appears on business television touting the glory of Musk and Tesla. Wood deserves credit cheerleading TSLA when it appeared that it may be flushed down the toilet. She now sleeps each night on bags of money. However, all good things end, and ARKK will likely follow the same path as TSLA gong forward. The weekly chart is identical. Thus, if you want to try some shorts, wait a week or two for price to elevate again and for the MACD line to roll over with neggie d on the weekly, that will be the top and begin a multi-week decline and you can play either TSLA or ARKK. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.