Sell The News In Tesla?

Tesla Motors Inc TSLA shares are trading higher by $8.33 at $238.10. However, it's way off the pre-market high of $251.50 that was made shortly after the open of pre-market trading at 4:00 a.m. EST. Traders initial reaction to the unveiling of the Tesla Model 3 was to buy everything in sight.

The rally took Tesla back over $250 for the first time since September 30, when it peaked at $252.40, which is $0.90 above the pre-market high $251.50. The entire resistance area is buffeted by the psychological $250 resistance level. After witnessing the issue swoon to $141.05, this $100 plus rally since February 19 may have some long-term investors taking some profits.

The time spent over $250 was short-lived. After climbing to the high in the first 29 minutes of pre-market trading, it was back under that key level in four minutes and never came close to revisiting it.

By the 9:30 a.m. EST open, it drifted back to the $245 area. Off the open, it managed a brief rally to $247.90 before profit-takers swarmed the issue. The ensuing decline has taken Tesla back into Thursday''s range, found intra-day support at $235 and has rebounded back to the $238 area.