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Market Lab Report - Review & Discussion of Tesla Motors (TSLA) Short-Sale Set-Up

Published : November 6 2016 at 17:08 ET

Last Sunday we issued a Short-Sale Set-Up report on Tesla Motors (TSLA). The stock opened up just above the $200 price level and then proceeded to reverse, ending the week about 5% lower at 190.56.

This represents an undercut of the stock's September and October lows at 193.45 and 192, respectively. On an intra-week basis, TSLA reached a low of 185.96, undercutting its prior late June low of 187.87. The 10-week moving average is now at 199.29, so any rallies up towards the line would represent your most optimal potential short-sale entry points.

Near-term, however, the prior September and October lows have served as upside resistance, so it is possible that this will remain the case and the stock will simply continue lower if it cannot move above resistance at 193.45. Our long-term downside price target is the February 2016 low at 141.05, which marks the low point of a large, v-shaped POD formation. TSLA failed from the right side of that deep v-shaped POD in April of this past year. It is now starting to shows signs of breaking down from a seven-week bear flag formation as it "breaks out" to the downside. 


This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2017 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.