Looking at the daily chart of Tesla, Fitzpatrick notes that the stock made a 52-week high of about $255 in February before paring gains. However, with shares recently breaking above that key level, Fitzpatrick believes Telsa was simply consolidating for six months, or trading sideways, in turn, forming a classic cup and handle pattern.
That's a pattern that often manifests before the next leg higher. How high can Tesla rally from here?
Technical analysis suggests the forthcoming rally could be predicated on the advance from the last time the stock made an all-time high; which involved a 37 percent advance.
If this same pattern repeats, resulting in another 37 percent move, then Fitzpatrick believes Tesla can rally to $370 before it runs out of steam.
And, a second method of measurement confirms the outlook. Looking at the distance from the bottom of the cup, to the top of the cup, Fitzpatrick thinks Tesla could easily rally 25 percent.
Whether it's ultimately 37 percent of upside or 25 percent, either way, Fitzpatrick thinks that Tesla is a raging buy right now.