Tesla stock is hovering near all-time highs, but one top technician says the charts show that the auto giant could be due for a major pullback.
While mega-cap tech stocks pulled back last week, and the Nasdaq 100 has dropped 2 percent from its recent high, Tesla shares rallied more than 1 percent. The stock has soared over 73 percent in the past year; however, "I think possibly we've got the chance for a little bit of a giveback," according to Carter Worth of Cornerstone Macro.
Since November 2016, the chart shows a strong and steady uptrend from $200 to around $380, and "what we do know is that all uptrends have check backs," Worth said Friday on CNBC's "Options Action."
Worth explained that while the charts point to a possible pullback for Tesla, "breakouts can continue, and I think that's the risk with shorting this."
"Tesla is the number one performing stock bar none. I think you take profits, or if you've got a little courage, you go short," Worth said.
Shares of Tesla were trading at $372.29 during midafternoon trading on Monday.
Facebook is on a tear this year — surging 42 percent and helping to push the tech sector to record highs.
Gold has rallied 6 percent this year, and one trader is betting nearly $1.5 million on an even bigger rise.
Cisco stock has been on fire over the past year, and one trader thinks there’s more room to run ahead of earnings.
Crude oil rallied more than 1 percent on Thursday helping one trader make a quarter million dollars in just 24 hours.
More From Options Action
Are more gains ahead for Microsoft, as the stock hits a new all-time high, with CNBC's Melissa Lee and the Options Action traders.
CNBC's Melissa Lee and the Options Action traders discuss the stocks they'll be watching next week.
With biotech earnings on tap, should you be prepared for a break out? With CNBC's Melissa Lee and the Options Action traders.
Mike Khouw breaks down the critical options concept known as "theta."
What's a call spread, and when should you use it? Mike Khouw breaks down the basics of this critical strategy.
How do options actually work, and why are they such powerful tools for traders? Mike Khouw explains the basics.
Options Action Newsletter:
Sign up to receive exclusive Options Action content. Each month you'll receive an exclusive message from host Melissa Lee and insight directly from one of the members of our Options Action panel. Keep your pulse on the market with the Options Action newsletter.