Carter Worth Is Bullish On Tesla

Speaking on CNBC, Carter Worth of Cornerstone Macro said it might be time to get a long position in Tesla Inc TSLA.

On June 16, he shared his bearish trading idea in the name, but now he thinks the correction is over and he believes the stock is ready to move higher.

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He explained that Tesla broke below its uptrend line, but after an aggressive decline below the trend line, stocks often get back to the trend line. After a 20 percent decline, Worth expects to see a 10 percent move higher.

Worth has also showed that the stock is currently trading at the price from which it broke out to the upside. This price was previously a resistance and it's now a strong support.