Tesla has been a momentum stock that has completely been derailed from any sort of normalcy, fundamentals and even technicals. This is a stock that has now formed an "Ascending 3-Point Parabola" which is very common in bubbles and precedes the impending "bursted" bubble scenario.
BlackBerry had this scenario in its prime to the 100s....So did Bitcoin to 18k....And so did many stocks in the 90s like Apple. People won't want to believe it, but algorithms don't operate on the "feelings" of people.
The split-share increased liquidity and diluted shareholders and this will likely be a trigger for algo bots to sell the stock. I believe the "new price" 502 in Tesla will act as the ATH for a number of years and that the stock will likely crash to just over $200 this year before eventually decaying to 100 or less several months later based on an eventual dis-interest amongst retail traders, reduced media coverage and likely reduced earnings estimates. Furthermore, the fact Tesla failed to get into the SPX could be yet another significant reason for the stock's current ATH to act as "the" ATH.
Trade the stock at your own risk but I see an eventual generational buying opportunity in Tesla below $100 similar to the generational buying opportunity when Apple formed an ABC parabola in the 90s and eventually burst (before its big run this decade).
I know this post will make all the Tesla cult-lovers angry but Tesla's stock rise has nothing to do with its "innovation" and its "future potential".
- zSplit
BlackBerry had this scenario in its prime to the 100s....So did Bitcoin to 18k....And so did many stocks in the 90s like Apple. People won't want to believe it, but algorithms don't operate on the "feelings" of people.
The split-share increased liquidity and diluted shareholders and this will likely be a trigger for algo bots to sell the stock. I believe the "new price" 502 in Tesla will act as the ATH for a number of years and that the stock will likely crash to just over $200 this year before eventually decaying to 100 or less several months later based on an eventual dis-interest amongst retail traders, reduced media coverage and likely reduced earnings estimates. Furthermore, the fact Tesla failed to get into the SPX could be yet another significant reason for the stock's current ATH to act as "the" ATH.
Trade the stock at your own risk but I see an eventual generational buying opportunity in Tesla below $100 similar to the generational buying opportunity when Apple formed an ABC parabola in the 90s and eventually burst (before its big run this decade).
I know this post will make all the Tesla cult-lovers angry but Tesla's stock rise has nothing to do with its "innovation" and its "future potential".
- zSplit
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