It’s really hard to forecast short-term price action, and TSLA doesn’t seem to be in a place where it’s a definite buy or sell to short-term traders. Lots of traders will be looking to short TSLA when/if it breaks $118.6 (or so) on high volume. At that point the selling pressure could likely bring the stock lower to eventually test the next resistance level being around $108-109 (goldman dip level and 200dma). Today TSLA tested it’s previous low of $119.22 by hitting a lower low of $119.06 but it wasn’t able to break through that level lower. So there’s a definite possibility of testing that resistance level again and lots of people are going to be watching it. It’s also possible that $119.06 is the bottom, but it’s too hard to tell right now.
It’s tough to call the bottom with any accuracy because there are just too many factors involved and we don’t know what catalysts lie ahead. Before going long most traders will want to see TSLA set up for a buying point. Traders have different approaches for this but I’m personally looking for a modified version of a false breakout (downward) with divergence (something William Elder preaches). It’s tough to explain without charts but the concept is I’m looking for a point where it looks like TSLA is going to breakdown but some indicators (ie., MACD histogram) show a more bullish picture (ie., momentum shifting positive). It’s tough to say at what price that will happen because we’ll have to wait and see how the price action pans out.
That said, I personally think we might be at the bottom or getting really close to the bottom. My hypothesis lies in my belief that there is a lot of smart money that will be picking up TSLA at what they believe to be bargain prices. Even when TSLA was in the 190s, I felt like there was a legitimate risk of it dropping to the 130s and even hitting the 100s. But, I’ve held a belief since late 2012 that buying TSLA at under $100 is a screaming bargain. So, I am projecting that others too (it doesn’t have to be a lot of people but it needs to be a lot of cash) will be tempted at the bargain prices of TSLA before it hits $100.