Doom or Boom for Tesla Motors

Tomorrow, electric-car maker Tesla Motors will report fourth-quarter results. This could be the turning point for its stock price which declined 38% since the new year 2016 started . Although Tesla has succeeded in producing the Roadster, the Model S, and now the Model X, there remain a number  challenges that could finally lead to collapse and bankruptcy Many are expecting the Model 3 to fail attracting consumer because of low Oil which means lower Gas prices !!

Back to last december, technically NASDAQ:TSLA was looking bearish as it was consolidating in a rising wedge and forming a big rounding top in weekly chart ( you can see it as a double top or head & shoulder formation )

#TeslaMotorWeekly 12 2015

This bearish look was confirmed early this year as price just started declining and broke below major support area 180 !
So how is this year going to unfold for Tesla ?? As you’ll see in the next 2 charts 180 area is the key pivot for bulls & bears and a pullback to that area will decide the path !!

If you still believe in Elon Musk’s Magic touch and willing to buy some shares 140 – 115 is the area to look for long entries which either will result in a retrace to 180 or you’ll hit the jackpot and enjoy a bull market rally for new highs

#TeslaMotorWeekly Bullish

If you believe Tesla motors is doomed and price will fall back to its fair price around 40 then the next pullback to 180 will be your opportunity to dump it !!

#TeslaMotorWeekly Bearish




Full time Trader & Analyst