Close The TSLA Trade: Shifting to a New Gear

Tesla In. (TSLA) is one of the "fast money" stocks trading on the NASDAQ. While it may not be an official member of the FAANG (Face Book, Amazon, Apple, Netflix, & Google) stocks, it sure trades like one. On 30-May-2017, we analyzed and discussed Tesla's stock trading pattern and came up with a trading strategy that would work for the bulls or the bears. The stock was trading at $325.14 and we identified $327.00 as a breakout level. If the shares traded above $327, one should buy the stock. If on the other hand, the share price breaks below $290, the stock might be breaking down. This would give a sell signal to the bears. If one owned the stock, they should certainly sell it and if they wanted to position for lower prices, they could sell a call spread or buy a put spread.

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