• 4 minutes Why Trump will win the wall fight
  • 9 minutes Climate Change: A Summer of Storms and Smog Is Coming
  • 12 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 16 minutes Washington Eyes Crackdown On OPEC
  • 15 hours Ayn Rand Was Right
  • 1 day is climate change a hoax? $2 Trillion/year worth of programs intended to be handed out by politicians and bureaucrats?
  • 8 hours Oil imports by countries
  • 12 hours Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 14 hours Solar and Wind Will Not "Save" the Climate
  • 13 hours Indian Oil Signs First Annual Deal For U.S. OilIndian Oil Signs First Annual Deal For U.S. Oil
  • 6 hours North Korea's Kim To Travel To Vietnam By Train, Summit At Government Guesthouse
  • 16 hours Sanctions or Support: Despite Sanctions, Iran's Oil Exports Rise In Early 2019
  • 5 hours America’s Shale Boom Keeps Rolling Even as Wildcatters Save Cash
  • 7 hours AI Will Eliminate Call Center Jobs
  • 12 hours NZ Oil, Gas Ban Could Cost $30 Bln
  • 2 hours US-backed coup in Venezuela not so smooth

Is Tesla About to Collapse?

Tesla

As I have pointed out here in the past, being negative on Tesla (TSLA) is usually not a good idea. The problems that the company faces are fairly obvious, but Elon Musk seems to have an almost magical ability to make them irrelevant. Nearly thirty percent of Tesla shares are currently held short, and when the news came this week that the company was once again looking like missing production targets those shorts must have been licking their lips, expecting a massive drop in the stock. As usual to this point they were disappointed, but the news behind the headlines suggests that they may soon get what they have been looking for.

(Click to enlarge)

For now though, what we saw was what is shown on the above chart. TSLA dropped, for sure, but over a couple of days only lost what it gained the day before the news broke. Once again, it showed the kind of resilience that has led me to refer to it as “Teflon Tesla”.

That resilience comes from the peculiar nature of Tesla. It is a company built on hope and vision, it is a haven for believers in alternative energy and tech, it is, in short, as much an ideology as a corporation. That leads to committed investors who see every bit of weakness, even when that weakness is for good reason, as a buying opportunity. That produces the kind of chart that you see above, where the stock becomes a range trader’s dream, frequently bouncing off clear support and resistance levels. As a frequent range trader…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin



Oilprice - The No. 1 Source for Oil & Energy News