Tesla Hits New All Time Highs: Is It A Short?

Jul. 29, 2013 2:42 PM ET

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Tesla Motors Inc (NASDAQ:TSLA) is trading at $135.12, +5.73 (4.43%). This is a new all time high for the stock and many are asking if the Goldman Sachs Group Inc (NYSE:GS) downgrade to $85 meant anything. Ultimately, Goldman Sachs will be right with the stock coming back down. Valuations are far too stretched and even the technical levels are not showing much further upside. The only thing driving the stock is a high amount of shorts. As the stock goes higher, stocks must cover. That creates artificial buying which propels it higher.

What is the master level for resistance? The stock is nearing its next master level. This level is $136 - $140. Look for it to top out and start back down again in the coming days.

Gareth Soloway
InTheMoneyStocks.com

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