Are you seeing these critical levels on Tesla (TSLA) (January 03, 2015)
I want to look at Tesla ( NASDAQ:TSLA ) here. I know some of you Teslonians see nothing but bullishness in this chart. You Tesla ( NASDAQ:TSLA ) bears think that the stock’s going to zero because it’s grossly overvalued.
Lets look at this chart here, first we’ll start with the weekly, at this point everybody except the liars would be telling you that they can’t tell the difference between a high base, in other words a stock that’s forming a high base here and then will ultimately move higher, and the top where this stock’s going to move lower; they kind of look the same until they resolve.
Well this is not resolved yet, so you’ve got this resistance here and then you’ve got support somewhere along here. But the stock’s really in a channel; it’s kind of drifting lower a bit and it has been; you know 2014 has been either a great year for you if you’re trading Tesla ( NASDAQ:TSLA ) or a horrible year just really depending on whether you’ve caught the trend or not. But really the stock has done a whole bunch of up and down movement without really much of a trend at all.
What I’m suggesting here is that we’re at a real critical point right here, and that is with the 50 and the 200-day moving average very, very tight together, and the stock just beneath these; this is a stock that could absolutely blast off through resistance in a really big way or just continue this drift lower.
Now, earnings aren’t due to be released until February sometime so right now we’ve got a trend here that’s lower. But there’s a potential, and you know I’m not seeing anything in this chart that you’re not, there’s a potential for the stock to breakout.
What I would suggest doing is, I would suggest waiting rather than buy the stock now wait to see what happens if the stock breaks out above the 50-day moving average. If you want to short the stock that’s fine, full disclosure, I actually have a little short position in this stock but I’m going to keep a really tight stop on it.
So my point is this, just wait for Tesla ( NASDAQ:TSLA ) to make a move one way or another before taking action, don’t predict it, it’s at a real critical point right now. Why don’t you just wait and see which way this stock moves before you decide what to do?
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