Tesla Motors Higher

em>Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Tesla Motors Inc. TSLA shares are trading higher by $11.50 at $264.51 in Tuesday's session. With no specific news out on the issue lets examine the technicals for a possible explanation to the rally. Of course, the major rally in the broad market is adding to the buying pressure in the issue. After a higher open, it retreated but found support ahead of Monday's low ($250.79), only reaching $251.84 before embarking on its move higher. Also, those two lows coincide with its low from June 17 at $252.02. Since July 20, it has come down hard off its recent high ($286.85) with a $282.26 close. What really got the issue moving to the downside was downgrade by UBS to Sell from Neutral and reduction in its price target from $220 to $210. So far, it has reached $265.40 and is not far from that level. That exceeds Monday's high, but is shy of Friday's high of $271.09.