Speaking on CNBC’s “Trading Nation” on Thursday, Ascent Wealth Partners managing director Todd Gordon said that Tesla’s upcoming earnings could give the company’s stock the thrust to push through the $1,000 mark. Currently trading at $875 per share, the electric car maker’s shares have surged nearly 110% this year.
“We like the name,” Gordon said during the interview. He added that Elon Musk has “picked up a little bit of credibility” following the first launch of a privately funded space mission.
“This opens up all sorts of possibilities in terms of future exploration programs out of NASA so very interesting there and he seems to be a little bit more measured in his tweeting,” he continued.
“Last quarter, Tesla crushed earnings,” said Gordon. “We have earnings coming up here on July 22 so we still have a little ways to go. But if we take a look at the chart here, it’s a very interesting technical formation.”
“It sort of sets up a trampoline or – forgive the pun — a launch finally into that $1,000 region,” said Gordon.
To take advantage of the move to $1,000, Gordon suggests buying the 1000 call with Aug. 21 expiration and selling the 1050 call. He says that $50 spread will cost around $1,300.
Gordon sees an inverse head and shoulders pattern formed by a low surrounded by two higher lows, suggesting the reversal of a downtrend.