Back on May 7th after earnings, TSLA reached down to test a great level of support that I certainly expected-hoped would hold. Based on the technical evidence and the high expectations and the heavy short interest in TSLA shares, it made sense for the stock to bottom as it was a lot of "fast money profits" to take and you needed new sellers to drive the price further down, so, consequently it held on.
Now, however, with the stock up nearly 10% to the 196 level and it is staring 199-203 resistance areas in the face... I would be tempted to take some money off the table on any longs. There is some good news out about Tesla backlog today now reaching out past 3Q, which implies strong demand for Tesla vehicles. Sometimes good news finds a way to put in a short term top. The opposite goes for short term bottoms - they usually occur in the face of bad news.
If you are going short here, then you are on your own. I believe I will look for any weakness from here to add to long positions.
Cheers.
Tim 3:44PM EST, Monday, May 19, 2014 195.90 last +4.34
Now, however, with the stock up nearly 10% to the 196 level and it is staring 199-203 resistance areas in the face... I would be tempted to take some money off the table on any longs. There is some good news out about Tesla backlog today now reaching out past 3Q, which implies strong demand for Tesla vehicles. Sometimes good news finds a way to put in a short term top. The opposite goes for short term bottoms - they usually occur in the face of bad news.
If you are going short here, then you are on your own. I believe I will look for any weakness from here to add to long positions.
Cheers.
Tim 3:44PM EST, Monday, May 19, 2014 195.90 last +4.34
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