Tesla Motors -TSLA -Overbought, Crude Oil Correlation
Crude Oil's recent weakness might spillover into TSLA shares here on a pullback to retest the EARNINGS RELEASE SUPPORT level. Buying Tesla was a similar trade to going long Crude Oil for the past month. Lately though, crude oil has turned down and has retraced from 62.58 to 57.99 on the front month contract (CL1! on TradingView).
There is an excellent level down at 230 (232-228 range) where TSLA shares can find very strong support from their last earnings report level. There are no major news announcements expected until early July when "new car deliveries" will be released "within 3 days of quarter end".
The negative press lately about Tesla about their door handles not operating properly, effectively keeping people from entering their cars, has had zero effect on TSLA shares. The major WSJ article published about how uneconomic solar power is unless it continues to receive massive subsidies was another shot across the bow of TSLA shares, but nothing happened. It would seem logical to understand the subsidies that have helped fossil fuels get to market to help make a fair comparison, but being fair is not what markets are all about.
I will label this chart "neutral" because I am suggesting you could short TSLA here for move back down to 232-230 and then I am also suggesting to go LONG at 232-230-228 on the retest of the EARNINGS LEVEL (green triangle).
Perhaps the best way to accomplish this trade is to short the 250 strike, June options.
Sharing my thoughts...
Tim
TSLA 247.00 last 9:05AM EST May 20, 2015
There is an excellent level down at 230 (232-228 range) where TSLA shares can find very strong support from their last earnings report level. There are no major news announcements expected until early July when "new car deliveries" will be released "within 3 days of quarter end".
The negative press lately about Tesla about their door handles not operating properly, effectively keeping people from entering their cars, has had zero effect on TSLA shares. The major WSJ article published about how uneconomic solar power is unless it continues to receive massive subsidies was another shot across the bow of TSLA shares, but nothing happened. It would seem logical to understand the subsidies that have helped fossil fuels get to market to help make a fair comparison, but being fair is not what markets are all about.
I will label this chart "neutral" because I am suggesting you could short TSLA here for move back down to 232-230 and then I am also suggesting to go LONG at 232-230-228 on the retest of the EARNINGS LEVEL (green triangle).
Perhaps the best way to accomplish this trade is to short the 250 strike, June options.
Sharing my thoughts...
Tim
TSLA 247.00 last 9:05AM EST May 20, 2015
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