TESLA SINKS AFTER CEO MOCKS SEC ON TWITTER
Tesla is currently trading at 271.82-lower by 3.55% as compared to the previous closing. In the Pre-market trading session on Friday, the stock was trading lower by about 4%. The stock has pared some of its losses after the opening bell.
Tesla fell on Friday after its CEO mocked the SEC in a controversial tweet on Thursday. The tweet called the SEC the “Shortseller Enrichment Commission”. The tweet was posted just hours after a federal judge ordered the CEO and the SEC to write a letter justifying a settlement which allows him to remain in charge at Tesla.
In the settlement that was announced over the weekend, the company and the CEO agreed to pay $20 million each to the regulator. Also, Elon Musk will step down as Chairman but continue as CEO.
The settlement also provided for the appointment of a new chairman and directors to balance Musk’s influence at the company as well as moves to oversee his output on social media.
On the technical front, the RSI is currently at 41.48% and suggests that the market can move in the downward direction. The current price is below the MA5. The current price is below the middle line of the Bollinger bands and is heading downwards.
Overall Bias is Negative and short-term trades can be initiated with tight Stop Loss and Profit targets.
TRADE SUGGESTION-LIMIT SELL AT 272.50 TAKE PROFIT AT 268.50 STOP LOSS AT 274.50