Almost Time to Sell Tesla Stock

Read The Full Article On: Investopedia

It’s been a good year for Tesla, Inc. (TSLA) and CEO Elon Musk, with the stock up more than 60% in the past three months. However, the momentum-fueled advance that erupted after third quarter earnings is now entering a zone of heavy resistance, raising the odds for a reversal that tests or fills October’s gap between $265 and $290. As a result, traders still on board this moving train should consider taking profits and hitting the sidelines, waiting for a low-risk re-entry at lower prices.

Despite the advance, the stock is up less than 4% in 2019 after traversing a broad trading range in place since the end of 2016. Five breakout attempts between 2017 and 2019 have failed to clear range resistance between $350 and $390, establishing a reversal zone that is now in play after Wednesday’s brief spike above $350. While the rally can still add points in the short term, the reward-to-risk profile is deteriorating rapidly, warning market players that the uptick may be nearing its end.  

Read The Full Article On: Investopedia

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