A surge this week has Tesla racing back to levels not seen in three months and reversing a sell-off that had wiped out a year’s worth of gains. The charts suggest its comeback is just getting started, one technical analyst says.
“Tesla likes to consolidate and then thrust higher,” TradingAnalysis.com’s Todd Gordon told CNBC’s “Trading Nation” on Thursday. “What we’ve seen over the last couple of years is Tesla’s big-time consolidation.”
Since early 2014, Tesla shares have largely traded between $200 and $300. Its stock has not traded below $200 since late 2016 and even pushed closer to the $400 mark, coming within $11 of that level when it hit an all-time high last September.
Zooming in on its performance over the past 36 months, Tesla came under heavy selling pressure twice as analysts raised questions about its fundamentals.
“As everyone was really coming down on Telsa on the fundamentals you can see that all we did was a 37 percent decline which was very much in line with the last decline, which was 34 percent. It’s actually very symmetrical, very technical, and very expected,” Gordon said.