Trade Ideas: TSLA, SUNE, WBMD

Tesla Motors (TSLA) rose again on Friday, hitting an all-time high of $129.94. Volume was strong with 11.3 million shares trading hands compared with a daily average of 9.9 million shares. At nearly $130, next support is at $125.61, the previous close, and then at $122.78. Resistance is at $133.78.

Tesla’s new 52-week high is beyond trend channel resistance, which suggests there is no imminent sign of a reversal. In fact, it looks like TSLA it’s getting ready to once again brake to the upside as its higher highs have resulted in the upper band of the rising trend channel, at $125, being convincingly penetrated.

Trade the name’s long side and look for it to carry forward. Over the last month, TSLA has gained almost 30%, it has gained 284% year-to-date, and 319% since this time last year.

$139 a share is our new short-term target.

SunEdison, Inc. (SUNE) has been in an overall uptrend since mid-2012. May was a great month for the stock as it rallied from a low of $5.05 to $8.72 – a 62% jump. It looks like SUNE it’s getting ready to re-test its 52-week high at $9.23, put in on July 12.

SunEdison’s stock will have resistance at $10.65 going forward. Unless key support levels currently at $8.43 and $7.82 are convincingly penetrated, the buy-on-the-dips strategy should be considered as a trade approach for the name. We believe the ticker could make another leg higher here if it breaks above $9.23 on good volume. If it gets above that level we may see an acceleration to the $12 area, which is our short-term target to the upside.

SUNE closed at $8.81 on Friday.

WebMD Health Corp. (WBMD) spiked nearly 26 percent on Friday after the company’s preliminary quarterly results and financial guidance exceeded Wall Street expectations. WBMD gapped open dramatically higher at the opening bell and rallied to a 52 week high of $35.28 in volume that spiked 800% above average. The company is now valued at around $1.7 billion.

WBMD, currently $33.82, is up 14% in the last month and up 135% in the last six months. Look for potential continuation above Friday’s highs for what could be an attempt by the equity to reach high 30s relatively quickly. That said, some volatility is to be expected, as the name’s share price has entered into overbought territory with an RSI value of almost 70.

Disclosure: No Positions

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