Tesla (TSLA) has made a new all time high this week. It’s been awhile since I created a post involving an individual stock. This name happens to be a very popular one due to the industry it’s in, it’s very talented CEO and of course it’s amazing performance for 2013.
The last time I posted an update on Tesla it was in the middle of it’s correction phase where a lot of concerns were arising. We took a look at the short history of this stock’s price chart and came up with a solid support zone around the $115 level. That post can be found here. That support zone held and now we find Tesla making a new all time high and trading above $200 a share (over 70% higher above defined support).
This type of growth stock with parabolic like price movement is relatively pointless to come up with price targets or projected resistance. It’s movement could hypothetically be unending. In this case it’s better to ride the momentum by highlighting support or a line in the sand where you establish the trade is no longer working and until/unless that level is breached you let the momentum work for you.
However if you make me come up with a price target I think the only logical area would be $270 as the next stop. That would mirror the previous trading range now left behind and it’s really the only possible price pattern left behind in this amazing rally!