Tesla Shock Therapy in Effect

With a short percentage of its float (shares outstanding) which remains shockingly elevated, Tesla bears absolutely must stay vigilant and disciplined this summer. 

On the updated TSLA daily chart, below, we can plainly see that the recent surge back over its 200-day simple moving average (yellow line) was riveting but could also be dismissed by bears as an isolated squeeze event which would surely roll back over. 

However, to that point, the true test of mettle for bulls would be when we saw the inevitable pause or dip after such a run. And as it stands today, it appears that bulls are indeed answering the bell and defending TSLA from sliding back down below the 200-day. 

Thus, if the broad market holding current lows to knock out a fairly benign summer range, TSLA becomes a viable squeeze play for further upside. 

I recognize that Tesla bears will counter with fundamental arguments about the firm and the CEO. However, with the name remaining very heavily-shorted, the mechanics of the stock itself could easily outweigh those bear arguments even if correct, at least for now. What that means is this: Tesla is really not that far from its own prior all-time highs and has staged an impressive comeback in June despite sleepwalking through most of the winter and spring months. Bears beware, especially if the 200-day keeps holding as support. 

On that note, regarding the broad market, most of these types of Tesla-like ideas will probably only work if we see a range at a minimum, in lieu of a deeper correction.