Shares of Tesla (NASDAQ:TSLA) have topped. I expect the stock to have a large corrective move to $325, possibly as low as $285. Last Wednesday, euphoria hit an all-time high as the stock jumped sharply to new all-time highs. Tesla's chart put in a doji topping signal and has since been underperforming the broader market. Volume was huge on that doji day, signaling major distribution by institutions and smart money. In the days that have followed, volume has remained high.
Monster Move
As the big money exits, small investors who bought into the hype are left holding the bag. Investors buying north of $370 are insane. If they stepped back and did not let the emotion get the best of them, they would notice the stock has moved higher from $180 to $385. That's a monster 113% move since last November. Unless founder and CEO Elon Musk had cured cancer, such a move is not normal. I like Musk as much as the next guy but I'm also a realist and all signs point to a major top and correction in Tesla.
