Tesla Motors Inc (NASDAQ:TSLA) is nearing a significant support level. It has fallen sharply over the last week after Elon Musk made a shady bid for solar play SolarCity Corp (NASDAQ:SCTY). While the deal likely will not be approved, it was definitely an error in judgement by Musk. With a huge financial stake in SolarCity, and his cousin running it, regulators will be looking very closely at the legalities to see if Musk broke any laws. In addition, the stock market collapse on the Brexit vote continued to add to the stock pain.
Tesla Motors fell from $220 to $190 in the last week. There is major support level coming into play at $178.00. TSLA will likely bounce off that level. This is a classic swing trade alert level. The bounce would likely last for at least a week and potential bounce back to $205.00.
Gareth Soloway
InTheMoneyStocks
