Tesla Inc was hit by waves and waves of sellers and short sellers in the past week when Elon Musk made a tweet about bringing Tesla to private. From there on, the gap up from bottom and cob in the daily chart suddenly morphed into a scary shorting session where sellers were determine to bring the stock down. It seemed as though investors wanted to kick Elon out of the company in search for a second leader for the company. Bad news was mounting non stop as the company continues to make losses where sustainability might be an issue. Click below links to read all the news.
https://www.cnbc.com/2018/08/17/tesla-reportedly-searching-for-a-no-2-executive-for-elon-musk.html
https://www.marketwatch.com/story/tesla-short-sellers-are-up-12-billion-since-elon-musks-going-private-tweet-2018-08-17
https://www.cnbc.com/2018/08/17/musk-details-excruciating-personal-toll-of-tesla-turmoil.html
https://www.cnbc.com/2018/08/17/tesla-tumbles-3point5-percent-ahead-of-elon-musks-reported-meeting-with-sec.html
Tesla gap down 9% yesterday during trading hours but I am not focused on it's drop yesterday but rather study the chart and volume on how it trended higher 1-2 weeks back as there were clues on how the stock drop thereafter. By knowing how the stock ran up and studying how smart money short sell at the top with their concerted effort, the result can speak volume for itself later like the drop yesterday.
So in the daily chart, first there was a 3/4 top where the stock rose at a very fast speed with a long bar. It was bullish when it gap up at bottom but because of the fast speed up, the stock was hastily called for sellers to unload and take profits. The volume was building up really fast where it turned abnormal. In the minute chart, there were more obvious signs, the sellers volume appeared on the day it rampant up and healthy volume of selling were seen yesterday. All those were pointing to bearish signs of selling than buying. To make matters worse, there were also large profit takings as the stock rose as circled in the 5 minute chart which might be the most crucial clue for the sell down yesterday. I will post and show an app in my Instagram account on how you can detect the LIVE buy/sell volume. Those interested can follow me on Instagram to download the app.
https://www.instagram.com/ronaldkstockmarket
To conclude, I won't be buying Tesla shares now. The bearish signs outweighs the bulls with more selling to some soon maybe? The company had been making losses after losses but the stock continued to rise rings a bell. It maybe buying on the American dream but I rather buy on logic. Whether or not Tesla will go private or if Elon Musk will be out-hustled, only time can tell.
I will reveal more unseen and unheard fine details in my US Stock program like a doctor performing an operation so that you have an winning edge when trading the stock. When you can decipher the volume, you can more or less predict the future by bringing your winning percentage higher. Looking forward to conduct a session soon.
Ronald K - A Game Changer
