This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Is Tesla Finally Turning Around? What About Facebook and Pepsi?

NEW YORK (TheStreet) -- Good morning, traders!

Today let's look at some market hotshots. Today's picks are Tesla Motors (TSLA), Facebook (FB) and PepsiCo (PEP).

1. First let's look at the market darling, Tesla, which designs, develops, manufactures and sells electric vehicles, as well as electric powertrain systems and components for other automotive manufacturers.

Tesla traded positive on Monday, closing up 2.7% to $216.61 per share.

  • Monday's range: 208.53 - 217.69
  • 52-week range: 55.12 - 265.00
  • Monday's volume: 4,777,330
  • 3-month average volume: 9,079,480

Telsa looks very good at this level, and today will be the deciding factor on whether it is time to buy. For the last five trading days, Tesla closed over the t-line (8 exponential moving average, or 8 EMA), and is in a very short term up trend. Now the moving averages are beginning to cross over one another. We had a t-line/20 SMA cross on Friday, and now we are having a 20 SMA/34 EMA cross today.

This is a sign of a reversal. However, it's not a buy yet.

Today, shares need to break above the recent resistance level of $218.64, thereby creating a higher high. I'd set a trigger at about $220, or for those of you who are a little more conservative, set your trigger on a close above the 50-day simple moving average at $222.42.

There are overhead resistance levels at about $230, $237.23, $244.50 and $252.70.

This stock is volatile. Everyone wants to trade it, buy it, watch it, talk about it. It is a cult stock. It has been in a much-needed downtrend since it reached its 52-week high of $265 back in February.

I see it turning around today. As soon as this thing does turn around, investors are going to be buying it up in droves. Enter above the 50-day SMA, and stay long until you see a sell signal or a close below the t-line.

Tesla reports earnings tomorrow after market close. Whatever the outcome of the earnings report, you can almost guarantee that there will be a big move after that report. Tesla always gaps after earnings.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs