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Tesla Signals Top: Here Is How To Play It

Jul. 15, 2013 12:50 PM ETTSLA
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Tesla Motors Inc (NASDAQ:TSLA) put in a short term top, possibly long term top today. This can be clearly seen on the daily chart with the max extension move higher with the final three bar surge, ending with a gap higher today and a reversal. The high of the day was $133.26. The stock has since fallen to the negative side, even as the stock market has floated higher. Tesla was added to the Nasdaq PowerShares QQQ Trust, Series 1 (NASDAQ:QQQ) as of today. Most think this is a positive for the stock, but history shows that stocks usually top out when this happens, after a major run. Tesla may be a great example of this happening. Look to play put options at least a month out or short the stock.

Gareth Soloway

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