If Tesla’s stock was a roller coaster, it would be one of the best roller coasters in America
Day traders must love trading Tesla and options traders must love the volatility. Just look at this chart on the last 12 months, it looks like an EKG monitor.
Telsa Stock Price
Support and resistance traders have been loving Tesla as well.
Recently, a former hedge fund manager, Whitney Tilson said Tesla will be below $100 by the end of 2019.
Tilson said Tesla’s announcement last week that it is cutting the price of the Model 3, closing its brick-and-mortar stores and returning to earnings losses in the first quarter of 2019 is the beginning of the end.
“I think Musk has no more rabbits to pull out of his hat and therefore it’s all downhill from here,” Tilson wrote. “I predict that by the end of the year, the stock, today at $295, will be under $100.”
Evidence exists that Model 3 demand is weak and inventories are growing, he said. At the same time, Tilson said he has a feeling that — for the first time — the number of investors losing faith in Musk is starting to exceed the number of investors “drinking his Kool-Aid.”
One investor is Alex Chalekian, CEO of Lake Avenue Financial, which manages about $150 million in assets and a long time investor in Tesla recently pulled his clients money from Tesla because he can't take the continued chaos.
So the question remains, is there any more Kool-Aid in the punch bowl, lets go to the monthly charts to identify the key levels to pay attention to?
The top side level to pay attention to is the $380 level, but a breach of the monthly demand at $250 will take price down to the next box.
With the potential for the next leg down to the monthly demand at $100...Whitney Tilson's year end target.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.