Tesla opened strongly higher Monday.
The stock was up more than 5% at midmorning after Jefferies upgraded it to buy on the company’s leadership in the electric-vehicle market.
Tesla also rallied Friday on solid first-quarter numbers. The automaker delivered more than 88,000 vehicles in the three months to March, up 40% from a year earlier.
Bill Baruch, president of Blue Line Capital, said Tesla shares act as a “great trading vehicle.”
“Tesla has a very well-defined floor at $400. This is where the 200-day moving average is. It also aligns with what was a previous ceiling,” Baruch said Friday on CNBC’s “Trading Nation.” “Until that breaks, you want to be buyer into $400, because at any point I feel that you could see a … gain up towards $600.”
Tesla shares were trading Monday around $505. A move to at least $600 marks 18% upside for the stock.
“There are some strong resistance levels up near $600, you have the [38.2%] retracement, the 50-day moving average, as well as the 50%…