The Biggest Baddest Bear Killer is…Tesla (TSLA)! Here’s a follow up to yesterday’s video analysis. (April 04, 2017)
TSLA
I want to talk about Tesla ( NASDAQ:TSLA ) today, and here is why: Because everybody else wants me to talk about it too. This is probably one of the most widely watched stocks in the market right now for a few different reasons. First of all its valuation is now larger than Ford ( NYSE:F ). Also they have been delivering an uncommonly high number of autos. There is a lot of bullish stuff going around about Tesla ( NASDAQ:TSLA ), but lets look at some stuff that really matters.
I have said for a long time and I will continue to say it, this company doesn’t really trade on fundamentals, it just doesn’t. They don’t earn any money, they burn cash like a lost hiker in the wilderness with a fist full of dollars and a bad case of hypothermia. The bottom line is, fundamentally they stink. However, with that said, technically there are some fundamentals that we really like here. There are actually two; 40 percent of the float is short and this stock is now at an all-time high, which means every single trader who is short Tesla ( NASDAQ:TSLA ) is screaming now. I think that is a significant amount of the buying pressure here.
There wasn’t any real specific catalyst that is responsible for pushing the stock up this high, at least I don’t think so. I think this is the biggest one right here. But also, if we look at the weekly chart, this thing has been trending sideways for years. Literally for years; never getting above $300.00. We have got a test here, here, not quite so much here, but then even back here. So there have been multiple tests of the level and that makes $300.00 a real critical level. Had been level of resistance, now I am looking at it as a level of support going forward. Maybe not exactly.
I could see the stock dipping down below 300.00 over the next day or two, maybe even to 290.00. But absent some bit of news that that is going to force folks to get out of Tesla ( NASDAQ:TSLA ) I think any pullback is actually buyable. Also, if you are already long this stock I would just stay long. I would just absolutely stay long, because if you are selling the stock what you are really doing is you are committing an act of philanthropy, which is nice, but you are letting some short guy get his shares back. Don’t do that. Just ride this thing until it bucks you off, and my bet is this is going a lot higher.
Free Chart