The meteoric rise and rise again of TSLA has caught the attention of a lot of traders. Although small investors are often highly bullish on TSLA, expecting prices of over 600 in the near future, larger investors have long been bearish on TSLA and continue to increase their short positions. 20% of the currently available stock on TSLA is shorts - which are mainly hedge funds.
TLSA’s rise is currently purely speculative. The stock is generating negative earnings per share (which it has done consistently during the uptrend). Even in a healthy and strong bullish market, TSLA is becoming one of the higher risk assets, and better opportunities for a short. Worsening the outlook for TSLA is the industry it is in being a weak one in a downturn.
On a technical outlook, bursting into new highs and making dizzying short term gains TSLA has found resistance at the fib projection level of 1.61. When we see what was a previously strong trending move react to resistance at the 1.61 projection it can be a sign of a topping market. Stops can go just above the last highs, and this gives a good RR opportunity.
Swing Trade : Sell TSLA 510. Stop Loss 559. Target 140.
If this move starts to happen, I will post additional short term trades to follow the momentum through days/weeks
TLSA’s rise is currently purely speculative. The stock is generating negative earnings per share (which it has done consistently during the uptrend). Even in a healthy and strong bullish market, TSLA is becoming one of the higher risk assets, and better opportunities for a short. Worsening the outlook for TSLA is the industry it is in being a weak one in a downturn.
On a technical outlook, bursting into new highs and making dizzying short term gains TSLA has found resistance at the fib projection level of 1.61. When we see what was a previously strong trending move react to resistance at the 1.61 projection it can be a sign of a topping market. Stops can go just above the last highs, and this gives a good RR opportunity.
Swing Trade : Sell TSLA 510. Stop Loss 559. Target 140.
If this move starts to happen, I will post additional short term trades to follow the momentum through days/weeks