This chart makes the case for buying Tesla ahead of earnings

Tesla hit an all-time high Monday morning, but with the company set to report earnings on Wednesday, the stock's record-setting run isn't yet done, according to technical analyst Todd Gordon of TradingAnalysis.com.

"I really like how the stock's acting into earnings," Gordon said Monday on CNBC's "Trading Nation."

Gordon says the stock is moving higher in a "parallel channel" stretching from December of last year through Tesla's current trading levels. Tesla's 3 percent jump on Monday helped the stock break through what Gordon says is a "$315 resistance," and the trader believes Tesla could rally on earnings to hit the upper line on the channel.

"Looks like if earnings do come out as expected, which is quite strong, you could be moving up towards the upper end around $330 in Tesla," said Gordon.

In order to play for a move higher in the stock, Gordon bought a "call spread" on Tesla that will return maximum profits if the stock closes at or above $325 by the end of the week. Specifically, this entails buying the 320-strike call and selling the 325-strike call, both of which expire on Friday.

April was a record month for Tesla. Not only did the company's shares continue to make record highs, it also surpassed both Ford and General Motors in market capitalization.

So far this year, Tesla stock has surged more than 51 percent.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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