But then lo and behold, he goes ahead and dumps stock again on three separate occasions. When he went back on that earlier this year, Musk said he was done selling. Years ago he said he wouldn’t sell shares. Some investors expressed frustration that Musk has been unpredictable when it comes to selling stock. That said, Musk only has until Friday to sell more stock before Tesla goes into a quiet period for the end of the quarter. Investors say it doesn’t seem like the sell was planned, and it’s unclear if Musk is done selling. Twitter took on $13 billion in debt as part of that deal, including about $3 billion of unsecured debt on which Twitter pays an interest rate of 11.75%. Some analysts speculate that today’s stock sell is Musk’s answer to some of the high interest debt he’s paying on his $44 billion Twitter deal. Trading at $156.80 after hours on Wednesday, Tesla stock is down 60.8% from January, and is on track for their worst full-year performance. Investors say Musk’s involvement with the social media platform is detrimental to Tesla, arguments they back by pointing to the company’s stock price. The sell comes as Tesla investors raise concerns over Musk’s involvement with Twitter, which the executive recently took over after a controversial, and expensive, purchase. In April, he sold off $8.5 billion worth of Tesla stock, and in August Musk offloaded another $7 billion worth.Īfter Wednesday’s share sell, Musk owns roughly $66 billion worth of Tesla stock. Musk hasn’t provided a reason publicly for the share sell this time around, nor if he is done for the day. Musk’s latest stock dump follows the nearly $4 billion worth of shares he sold last month. The sale is worth about $3.5 billion, according to a regulatory filing. The stock has resistance above at $254.98 and $271.71 and support below at $234.35 and $225.03.Tesla CEO Elon Musk sold more than 20 million shares of the company stock between Monday and Wednesday.The products, which are traded on SPIKES Volatility Index SPIKE, track expected volatility in the SPDR S&P 500 over the next 30 days. If Tesla starts to fall on big bearish volume in tandem with other mega-cap stocks, volatility in the stock market could increase. Traders wishing to trade the volatility in the stock market can use MIAX’s SPIKES Volatility products.Bearish traders want to see Tesla print a lower low, which could increase downside pressure. If Tesla falls on Monday, bullish traders who aren’t already in a position can watch for the stock to form a reversal candlestick, such as a doji or hammer candlestick, near the bottom of the gap for a possible entry.Gaps close about 90% of the time, making it likely Tesla will drop to reach the lower range of the gap, which exists between $235.23 and $242.02 in the future. On Friday, Tesla gapped up to open the trading session and didn’t fall enough to close that gap.The most recent confirmed higher high was printed at the $221.91 level on that same day. The stock’s most recent higher low was formed on June 12 at $212.53. The Tesla Chart: Tesla has been trading in an uptrend since April 27, making a consistent series of higher highs and higher lows. Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial. In an uptrend the "trend is your friend" until it’s not and in an uptrend there are ways for both bullish and bearish traders to participate in the stock. Moreover, the higher highs and higher lows often take place at resistance and support levels. Likewise, the higher low could be signaled when a doji, morning star or hammer candlestick is printed. A stock often signals when the higher high is in by printing a reversal candlestick such as a doji, bearish engulfing or hanging man candlestick.
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