The majority of stocks are off to a rough start in 2016, and Tesla Motors Inc TSLA is no exception. With the company set to release Q4 earnings on Wednesday, traders are on high-alert for a major move in one direction or another.
According to data from Call Levels, traders now have the most Tesla notifications set for around the $140 level, slightly below the level at which the stock recently found short-term support.
Tesla bulls are likely hoping that $140 will hold as longer-term support and serve as a nice level at which to buy for future trades. Tesla bears, on the other hand, are looking for any move below $140 as a sign to short the stock. Tesla has very little technical support in its chart in its current trading rage, and move below $140 could drive the stock down to the $116 region where it found support in late 2013.
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In terms of resistance levels to watch, Tesla now likely faces major resistance in the $175-185 region, which had served as support for the stock several times prior to 2016’s breakdown. If Tesla bulls get a major earnings surprise, a post-earnings bounce could hit a ceiling at this level.
Disclosure: the author holds no position in the stocks mentioned.
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