For Tesla, we’re in ‘wait and see mode’ but ichimoku clouds remain bullish: analyst

Yahoo Finance’s Jared Blikre and Katie Stockton, founder and managing partner of Fairlead Strategies discuss the recent pullback in Tesla's stock and where it may land going forward.

Video transcript

KATIE STOCKTON: Just visually, you can see for Tesla the trend is higher based on that cloud or shaded area on the chart. It's not-- not really a black box, but it's created in a way that's derived from midpoints of price. So, it's a little bit convoluted in its construction. But at a picture, it adds almost like a market indicator that's been lifted from its own window and plopped on the chart there and it tends to track price.

But then we can use it as a way to understand, support, and resistance. Of course, Tesla's quite far away from it right now. So, we don't look at it as really a magnet, except to say that going forward, it does rise over time. Though it does suggest that Tesla will maintain its long term uptrend. Of course, there are short term issues right now with Tesla.

We have a retest underway of its 20-day moving average. Their support essentially in line. There's also a Fibonacci retracement level around 583 that we really want to see hold on a consecutive closing basis. So, here too we're in that wait and see mode [INAUDIBLE] discover support, but ultimately, we expect to be able to defer to that cloud-based sort of support and guidance in terms of the long term trend for Tesla.