TSLA at the Top of Fib Levels. Short Anyone?
Updated
I feel that I could write a book on the many reasons to short Tesla fundamentally; whether for the intense cash burn, lack of production know-how and legal and mechanical issues, but this becomes easier when the stock is a clear short situation.
Here, TSLA is clearly at the top of their Fib levels and is seriously overbought according to the RSI.
Even in a bull market, these kinds of setups make even the most ardent bull fear for the short-selling army.
Not only does this trade look good in the short term, but it very well could be a position to hold for a considerable time.
Know, however, that there are chances that when TSLA runs out of money there very well could be a buy attempt by another firm, so needless to say this trade is not without risk and profits should be taken accordingly.
Disclosure: Disclosure: I/we have no positions in any stocks mentioned, and have no plans to initiate any positions in TSLA within the next 72 hours.
Here, TSLA is clearly at the top of their Fib levels and is seriously overbought according to the RSI.
Even in a bull market, these kinds of setups make even the most ardent bull fear for the short-selling army.
Not only does this trade look good in the short term, but it very well could be a position to hold for a considerable time.
Know, however, that there are chances that when TSLA runs out of money there very well could be a buy attempt by another firm, so needless to say this trade is not without risk and profits should be taken accordingly.
Disclosure: Disclosure: I/we have no positions in any stocks mentioned, and have no plans to initiate any positions in TSLA within the next 72 hours.
Note
TSLA gapped down nearly 1 percent, currently at 355 flat according to google finance. President Trump's trade war tensions have roughly the entire market gapping down slightly, which could help get this trade moving in the right direction.
Note
TSLA moved back up to a 3% gain, making a further move forward, but not really for news, other than the excitement behind their new range of high-tier sports cars. I still feel strongly that downside movement is much more possible that upside at the moment, especially after today.
Note
This trade took a little time to develop, but ultimately paid off very well. If you had shorted TSLA at the time that I made the call, you would have made over 6%. While you could decide to ride the wave down, I think it better to simply take gains and let someone else have the high risk. Another Successful trade!!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.