Short-Sale Set Up - Update on TSLA 6/22/16

Published : June 22 2016 at 10:39 ET

Members will note that short-sale target Tesla Motors (TSLA) broke down hard last night in after-hours trade after announcing that they would seek to bid for SolarCity (SCTY), a company that is run by Elon Musk's cousin. That sent the stock below the 195 low of August 2015 which could be considered a short-term cover point at which to take at least partial profits. However, one could also choose to set a trailing stop that guarantees a profit on any position taken near the 220 level per our comments earlier in the week.

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