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Tesla Motors (NASDAQ:TSLA) is nearing a significant support level. It fell sharply last week when Elon Musk made a shady bid SolarCity (NASDAQ:SCTY). While the deal isn't likely to be approved, it was definitely an error in judgement by Musk. With a huge financial stake in SolarCity, which is run by his cousin, regulators will be looking very closely at the legalities to see if Musk broke any laws. In addition, the stock market's collapse on the Brexit vote continued to add to the TSLA's pain.
Tesla fell from $220 to $190 in the last week. There is a major support level coming into play at $178.00. TSLA will likely bounce off that level, which is a classic swing-trade alert level. The bounce would likely last for at least a week ahead of a potential bounce back to $205.00.
I'll release detailed trade info on this stock when its the right time to enter here.
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