Tesla (TSLA) stock should be sold here – No reason to hold it at this point
It was just last month I was long on Tesla (TSLA). And it was’t a great trade for me either as I eventually took a 2.9% loss on my Tesla shares. Not one of my finer trades on the month (though it was a good trading month). Nontheless, today’s sell-off does not endear me to want to try and buy TSLA again.
But that doesn’t mean you go out and find some shares of TSLA to short either. I think that this company is one of those that can really burn the bears with random press releases, and even has the potential to be bought out by a Silicon Vally company – think Apple (AAPL).
I just think that Tesla’s stock should not be bought here. For some, that will be a tough trade to pass up, as the Tesla share price has provided few opportunities of late to buy on the dip, and TSLA in itself, have been a stock, over the past eight months that has rarely provided traders with dip to buy. But I have my reasons for wanting to stay away from it – and it all revolves around the technical side. And let me tell you what they are.
My reasons for why Tesla Stock should be sold:
- TSLA’s 50-day moving average that has previously provided support has been BROKEN
- Short term support for Tesla in the 350’s has been BROKEN
- 4-month rising trend line off of the March lows has been BROKEN
- Rising Support from the April higher-highs have been BROKEN
I’ve went ahead and mapped out all these technical breaches on the Tesla chart so that you can see for your self why I think the stock should be sold