Tuesday, March 27, 2018

Tesla's Stock Is In A Very Dangerous Spot (TSLA)

We've noted the $300 line on the price chart a few times, not because of the "psychologically important" big fat round number but because it has been the spot where buyers have come in (for their own quasi-mystical reasons),
The thing is, each test of support sucks up more and more of the money those so inclined are willing to part with until that time there is no more money that wants to commit to the long side, at which point, whoosh!

The stock can drop to the last major support which in the case of TSLA is around the $240 level where the run to the $389.61 all-time high began.

Whoosh! It's a technical term.

TSLA Tesla, Inc. daily Stock Chart

$301.10  down $3.08.

Here's the latest from Dan McCrum at FT Alphaville:

Tesla the most shorted stock on the US market, again
Tesla has always been a rage stock, prompting boggle-eyed incredulity from investors who can't believe Elon Musk will keep dancing towards the horizon on a trail of broken production promises.
It has been a tough one to sell short, historically, but on Monday Tesla's share price dipped below $300 for the first time since November, and it could be a long way down from there: 
Earnings aren't due until the start of May, when we'll find out the latest news on cash burn and progress towards mass production of the Model 3 electric car. Speculators betting the price of Tesla's debt will drop further are holding firm, according to IHS Markit.
The green line and left hand axis shows the balance for shorted bonds:...MUCH MORE
Recently from FT Alphaville:
Tale of the Tape: "Tesla's debt price is deteriorating" (TSLA)