There's a 'short opportunity' in Tesla, says technician (via tradingnation)
Shares of the Palo Alto-based company are now up more than 17% for June — pacing for its best month since last October. But Blue Line Futures' Bill Baruch and S&P Global's Erin Gibbs say don't be fooled by the short-term bounce, because ultimately this stock is heading lower.
Baruch says much of Tuesday's gain was due to short covering ahead of the investor meeting rather than the Street turning bullish on the stock. "Elon Musk is going to try to boost the stock the best he can. There's still fundamental challenges," Baruch said Tuesday on CNBC's"I'm looking at $250 area, $245 as being an area to look to sell this. As long as it stays contained through this investor meeting then I think you'll have a short opportunity," he said. According to FactSet, 31.4% of Tesla's float is short interest, which makes it one of the most heavily shorted stocks.
While Tesla may have started June on a high note, it's been a volatile year for the stock — and the company. Among other things,
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