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Tesla (TSLA) captured the stock market’s headlines this week after a solid Q3 earnings report that resulted in its shares surging nearly 22% on Thursday.This move caught many traders off guard, as Tesla had been one of the most-heavily shorted stocks in the market. But as my colleague Corey Rosenbloom and I both like to say, surprises tend to happen in the direction of the trend. And when it comes to Tesla, the long-term trend is still up.It’s one of the reasons why I shared an idea with my chatroom members to get long shares of Tesla back on September 12. But now, given the recent developments, I think it’s time to “Back up the Cyber Truck.” Check this out…
Tesla Will Supercharge Stocks
If we step back and look at the Magnificent Seven names, of which Tesla is a component, it’s easy to see that this stock might have the most value in terms of potential upside compared to its peers. In fact, it’s the only one in the crew that hasn’t made a new all-time high in 2024.Check out this weekly chart of Tesla below:
The chart is pressing up against technical resistance of a saucer web pattern. It’s one of my favorite web formations to trade, especially with A.I. Timing Webs.If this thing clears resistance, look out above – Tesla could supercharge the overall stock market.My question to you is this – what do you think stocks will do if Tesla rips +60% and retests it’s former all-time high in the $410 to $415 area? This is my baseline bullish case, and I think it could go even higher.Truth be told, I’m looking for Tesla to turn into an $800 stock – at least. And in case you were wondering, yes, Tesla is a major player in the Trinity Trade.This is why, today, I’m issuing a rare “Back up the Cyber Truck” rating on Tesla. Like I said, I’m already long from September 12 at $229.53. But now, I’m looking to start pyramiding on the long side.Here is my strategy:Buy Tesla on a close above $263.23 with a stop loss on a close below $242.15. The target is $414.00 to capture gains and “park the cyber truck.” Normally, I only allocate 5-10% of my account into a trade, but this is one of those rare instances where I’ll put 15% into a trade. Let’s see Tesla can drive the stock market to new all-time highs here.More By This Author:It’s All About Oil And Energy Versus Gold And Inflation The Market’s Breaking Its “Silence” In A Big Way The Trinity Trade Is Looking To Push Stocks To All-Time Highs
