Is Now the Time to Sell TSLA?

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TSLA

TSLA

Tesla Motors Inc (NASDAQ:TSLA) on the daily charts is in a very strong uptrend since the beginning of the year and has  been notching up higher highs and higher lows indicative of the fact that the stock has found buying support at lower levels which is a bullish indicator. Tesla Motors Inc (NASDAQ:TSLA) announced in a statement that they would be extending the warranty on their Model S cars for new and previous owners for up to 8 years which according to many analysts is an absolute game changer.

Elon Musk, the company’s’ founder released a statement on the move stating that since everyone working at Tesla Motors Inc (NASDAQ:TSLA) believes that electric engines are more durable and reliable than gasoline engines; this warranty would add credibility to the belief. He also believed that such a warranty should have been in place right from the beginning. Tesla Motors Inc (NASDAQ:TSLA) has also released all of its patents so that the electric car market is opened up and gives rise to innovation.

Tesla Motors Inc (NASDAQ:TSLA) on Friday had a volatile session witnessing a sell off mid day but recouping all losses by the end of the trading session forming a “bullish hammer” which indicates towards strong bullish momentum. The relative strength index for Tesla Motors Inc (NASDAQ:TSLA) has been in overbought zones but showing no signs of a reversal which is in line with the overall bullish trading structure for the stock.

Actionable Insight:

Since the stock is on the higher end of the trading range, traders should remain cautious before taking long positions.

Long Tesla Motors Inc (NASDAQ:TSLA) only if it breaks above $268 with a strict stop loss at $258 and a primary target at $283

Short Tesla Motors Inc (NASDAQ:TSLA) if it breaks below $258 with a strict stop loss at $265 and a primary target at $245

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Deepak Tiwari, a law graduate, has been working as a journalist for six years now. He currently writes on Bitcoin, economic, and Forex related news at ForexMinute, the brand new financial news portal which is making waves among Forex traders around the globe for the innumerable Forex resources it offers for readers, traders and brokers. His other specialties include writing on law & governance, finance, internet marketing, careers, politics, international relations & diplomacy, etc.