NEW YORK ( TheStreet) -- Elon Musk's Tesla Motors (TSLA) has yet to break down and reward the bears. Scott Redler, chief strategic officer at T3Live.com, tells TheStreet's Debra Borchardt that that story might not change anytime soon.
The automaker will be replacing Oracle (ORCL) in the Nasdaq 100, but to be fair, Oracle has already announced it's moving to the New York Stock Exchange.
Redler said that perhaps some traders knew of the impending move, as Tesla refused to go red yesterday from an analyst downgrade based on valuation.
He added that young growth companies rarely trade without a bloated or elevated valuation and that too many bears try to attack that aspect.That's where technicals, price action and momentum come in, since traders need something to try and trade Tesla off of. Once the stock ripped higher after earnings, it held those gains and spent several months consolidating. Redler says that while we might be a little overbought in the short term, the long term potentially offers bulls $150 per share. Another stock that he likes is SolarCity (SCTY), a company that went public in December 2012. The company held its 50-day moving average after the employee-stock lock up period ended, a bullish technical sign. He added that if the stock can break out above $41.50, that $45 would be the next line of resistance. However, he also cautioned that this stock is still pretty new and that Wall Street will need to see a few more earnings reports before really warming up to it. -- Written by Bret Kenwell in Petoskey, Mich. . Follow @BretKenwell