Here is your trade on Tesla (TSLA). (March 01, 2016)
Not Super Tuesday for Tesla ( NASDAQ:TSLA ). The reason I’m covering this stock is because I think it’s going lower. Citron Research published a note that they were looking for a $100.00 price cut on this stock over the next year. It isn’t tomorrow, don’t get all crazy on me. But, where these lines are, that’s really what I look at as resistance right at 200.00, because it’s 200.00. And then support right at 150.00, because it’s 150.00. This, maybe you ultimately get down to it, but it isn’t relevant right now. I think this stock has legs to the downside. You’ll note that the bulls pushed it right up to the 50-day moving average, but the stock wasn’t able to push though. So I’d, frankly, be short this stock.
If you’re the shorting kind then I’d just short the stock and put your stop, I guess you could put it up above 200.00, just put it up anywhere just above the last little cluster of prices, maybe above the 50-day moving average. But if this starts breaking through this resistance level here, at the price and the 50-day moving average, and 200, then this is going to move higher. But the short interest isn’t really, as far as the days to cover, not really high on this, so this can move lower for a while. I traded this a bit today because I just happened to be watching it and suddenly it looked like the bottom dropped out of it. I’m currently not in it actually, other than some way out of the money spreads. But tomorrow, certainly if this stock falls below 182.70, which is the low, look for lower prices. But if you look at the weekly chart this has been in what’s starting to look more and more like a topping pattern.
Now, if this breaks down through 150.00, which it may very well, if you’re a “Teslonian” you’re going to say, “What! 150.00, there’s no way it can do that.” Dude, this is a weekly chart, it was just there a month ago. If it breaks through 150.00 this could fall quite a bit further and maybe hit that $100.00 or so. There’s no way right now that I would be long Tesla ( NASDAQ:TSLA ). If you are, and you insist that I’m wrong, that’s okay because I don’t take it personally. It isn’t about me it’s about the stock. By the way, that’s the way everybody should be trading. It’s not about you, it’s about the stock. So there’s that old adage, “Do you want to be right or do you want to make money?” If the stock is moving against you then you can wait as long as you want to be right, but in the meantime you’re losing money. This is a stock that’s going lower.
Free Chart