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.
