Teslonian Alert! Here are my thoughts on the pending ‘Death Cross” on Tesla (TSLA) (December 03, 2014)
I want to talk about Tesla ( NASDAQ:TSLA ) here. The moving averages are almost ready to do a quote “bearish crossover”, that’s a really, really ominous thing you hear. You’ll probably hear somebody in the financial media world talking about a bearish crossover on Tesla ( NASDAQ:TSLA ), and this is the first time that’s happened. In this case I actually think they’re right.
The reason that I’m saying that is because a lot of times bearish crossovers, where the 50-moving average crosses below the 200-day moving average, a lot of times those are actually great buy signals because it’s such a stinking, lagging indicator. But you think about that, and what happens a lot is that the reason it’s actually a buy as opposed to a sell is the stocks been oscillating so much that the 50-day moving average is way up here the 200-day moving average is clear down here.
And by the time the 50-day moving average swings down and crosses over the stock, which had been trading down here, is so oversold that it’s time to buy it. In this case though we don’t have that, we actually have the 50-day drifting lower, the 200-day, just kind of flat. We’ve got a series of lower highs, there’s your flat base right there, but the stock’s starting to drift lower and you’ve got some supply here.
I like Tesla ( NASDAQ:TSLA ), I haven’t done well trading this stock the last three quarters; the first quarter I made a lot of money on it, so did anybody else who was long, that doesn’t mark me as a brilliant trader it just marks me as a guy that was long Tesla ( NASDAQ:TSLA ) options. Here I’m looking at this, this is a lot of supply here, I think Tesla ( NASDAQ:TSLA ) is something you want to sell into any strength.
Just don’t sell it now because the stock did gap down, it opened at 226.03, it traded down 53 cents before moving higher, so we could see a little bounce in this stock. I would just suggest that you look to sell this into any strength, maybe get off a short, it just depends, I don’t know what the stock is going to look like, I wouldn’t be shorting now. But if it moved up into the 230s, close to 240.00 and then started looking like it was rolling over, that’s a short that you’re probably going to want to consider.
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