Market Overview

Technician: Tesla Is Targeting $160

Related TSLA
Heartbreak And Desire: 11 Of Our Favorite Wall Street Love Stories
Benzinga's Top Upgrades, Downgrades For February 13, 2018
Taking a lap with auto stocks (Seeking Alpha)

Technician Gary Kwapik said that Tesla Motors Inc (NASDAQ: TSLA) is targeting $160 if a head and shoulders pattern comes to fruition after Wednesday's earnings report.

Implied volatility is very pricey, he noted, indicating a $20 move is expected. Tesla is currently trading below $210, down nearly 4 percent on the session.

According to his charts, Kwapik identified a head and shoulders pattern, with the neck line at $216 to $217.


Fundamentally, Kwapik says that poor China sales and Apple Inc. (NASDAQ: AAPL)'s potential electronic car competition has the stock in a vulnerable position.

Related Link: Pro: Tesla's Success Is Riding On This

If traders are bearish on the stock, Kwapik mentions looking out to the March or April expirations for lower implied volatility.

Long-term put spreads could be the most cost-effective way to take advantage of a move lower, he concluded.

Posted-In: Gary KwapikShort Ideas Technicals Trading Ideas


Related Articles (AAPL + TSLA)

View Comments and Join the Discussion!