Although the S&P 500 and Nasdaq have fallen quite a bit in the pre-market session, our stock today has held up fairly well. Tesla (TSLA) found a way to hold the line despite this selloff after quite the bullish run toward our mark of 180. With it holding above 180, at least for now, our initial math was to expect a run back up toward 190 and even 200.
With this selloff, we aren’t saying the bull rally is over, but it could derail our initial plan of a strong TSLA push toward this level. Yesterday was a strong day for the stock, however, TSLA has been known to reverse course quite abruptly after runs like this. Today’s session will reveal a lot about the validity of this trade. If it manages to hold 180, despite a broader selloff, it could be a positive sign that the rally could kick back into high gear.
If it doesn’t, it could fall back toward its last major support level in quite a hurry. This will still be a trade that is on our watchlist, although this is a great lesson on how quickly things in this market can reverse course, without much warning. Keep an eye on TSLA regardless…
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