Tuesday 3 December 2013

TSLA - bears on the run

Whilst the main market saw moderate weakness across the day, Tesla (TSLA) opened 6% higher, built gains, settling +16.3% @ $143. This is probably just an overly large short-squeeze bounce. There is obvious resistance in the 160s..where the 50 day MA is lurking.

TSLA, daily.


For me, the only issue is whether the big $100 threshold will hold in the weeks ahead.

A few daily closes <$100, will open up the secondary target zone of 70/60. Oscar Carboni has again been on the bearish TSLA wagon, and I'm certainly open to seeing further downside in this overly hyped car maker.

Near term price momentum is clearly swinging to the bulls..but there will indeed be stiff resistance in the 150/60 zone. I certainly do not see any realistic hope of TSLA holding the 170s or higher for some very considerable time.

*As it is, I never trade the momo stocks, I have no patience or tolerance for the momo stocks. They sure are entertaining to watch from the sidelines though!