Tesla Earnings (TSLA) Preview: Tensions Running High

As earnings season winds down, there are still some big names left to report. After the bell today, Tesla Motors (TSLA) will report earnings. According to Estimize, Wall Street is expecting Tesla earnings (EPS) to come in at 0.25 on revenue of 1.194 billion. It’ll be interesting to see how the numbers play out as rumors swirl about their overseas executive team. Let’s take a look at the recent price action.

The dominant pattern in place is the head and shoulders top formed in the middle of 2014. The dominant trend remains down with the continuous trend of lower highs and lower lows.

Before we did into more chart specifics, let’s look at what the options markets are saying.

Options are pricing in an 18.5 point move. 18.5 points in either direction takes us roughly to either side of the recent range.

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Tesla (TSLA) Stock Chart – Tesla Earnings To Be Volatile?

tesla earnings volatility_tsla price chart_february 11


Here’s a quick look at key some key price levels and pivots heading into the Tesla earnings report.

tsla stock price pivots_chart tesla earnings february 11


Lastly, let’s look at the technical setup. As I mentioned above, the dominant trend is lower heading into Tesla earnings tonight.

After a panic gap down below trend support (line A), shares regained and successfully tested the trend line. Moving forward this is critical support to watch. After the successful back test, price successfully broke sharp resistance (line B). Perhaps a move to the more gradual sloping line is in order.

Also note RSI has suggested bearish momentum since the beginning of October. That was, until the last week of January. Now momentum is neutral.

Tesla Motors (TSLA) Stock Chart

tsla stock chart analysis tesla earnings


The overall takeaway here is, much like the S&P 500, this is a range bound market. A lot of signs point to the 195-190 AND 225-230 areas. Perhaps a break of either of those levels will give us a trending signal. And it all starts tonight with Tesla earnings.

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No positions in any mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.