Watch $200 level for Tesla

Tesla (TSLA), the Wall Street darling, has been crashing over 30% in the past few weeks. This is one of the most expensive stocks in the world with ridiculously high expectation for it. With such kind of stupid valuation assigned to it, there is simply no way for Tesla to deliver. It has to crash sooner or later. The thing is when people get crazy for something, they simply don't think with brain but only with imagination regardless how unrealistic it is. So it is always very difficult to predict when an expensive and high-flying stock will plunge. I tried once before with Tesla but failed, although I don't believe I was really wrong. It will come down to the ground some day, just a matter of time.

Right now Tesla has just broken down its important support level, $200. Will it further drop? I don't know but I won't be surprised even if it is cut half from this level. If you holds Tesla, watch for the $200 level carefully. Likely it will come back to retest $200, its resistance level for now. If it can break out and surpass this level, then it may restart its bull run for some time. I'm pretty sure there are enough people out there, willing to push it up. But if it cannot hold at the $200 level and starts to resume its downturn, then watch out below. You may want to sell our position if this happens as it could be really ugly for Tesla.