Tesla Motors Offers Fresh Sell Signal

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Tesla Motors Inc (NASDAQ:TSLA) has been in quiet an uptrend over the last year on back of strong sales as more and more American consumers shift towards electric vehicles. Tesla Motors Inc (NASDAQ:TSLA) has been known to change the automobile industry, by not only revolutionary sales techniques but also sustaining in the hyper-competitive EV (electronic vehicle) market.

Tesla Motors Inc (NASDAQ:TSLA) has also stuck to its guns when it comes to the direct sales approach and completely debunking the franchising model made famous by other competitors. In a recent press release the company said, that it, expects to sell around 35,000 Model S in the current year. According to the press release, the company is aiming at 2017 where it would launch its Model III which would cut the current cost of an electronic vehicle by half. This has been seen as a huge positive for the company by analysts and investors on Wall Street.

 

On the daily charts for Tesla Motors Inc (NASDAQ:TSLA), the stock has been in a tremendous uptrend over the last year. The stock has over the past week, shown first signs of a breakdown right from hitting an intraday high of $292. The stock has slid below the all important support zone at its 50 day moving average at $253 which is a bearish indicator. The momentum indicators for Tesla Motors Inc (NASDAQ:TSLA) have given a fresh sell signal indicative of the shift of momentum towards the sell side. Similarly, the relative strength index for Tesla Motors Inc (NASDAQ:TSLA) has given a fresh sell signal and shows no signs of reversal at the current moment.

 

Actionable Insight:

Short Tesla Motors Inc (NASDAQ:TSLA) at current levels for a short term target at $214 with a stop loss above $563

 

Long Tesla Motors Inc (NASDAQ:TSLA) only if it closes above $262 with a target at $290

 

 

 

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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.