With markets near all-time highs, the higher-beta names should be performing well. That is simply not the case for Tesla (TSLA) , which is the one stock everyone hates to love and loves to hate.
The chart tells the story, with a downtrend channel of lower highs and lower lows. The Relative Strength Index (RSI) has been rejected above 50 on three occasions, which has been a great place to sell the stock.
Thursday's gap down is in middle of the channel, but the volume is going to be massive, much more than any of the up days for the past few months. The cloud is bearish and portraying lower levels to come, momentum is poor.
This is a tough name to stay short, but using options (puts/spreads) might be a better way to go.
Any rally up is probably a good shorting chance, but if TSLA follows through to the downside Friday the selling could be aggressive.
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