Until yesterday, this stock was the obedient slave of Hidden Pivots, rallying over several weeks to within 21 cents of our longstanding target at 205.79.  That changed after Wednesday’s close, however, when the stock took a manic leap to $225 (see inset) on word that Q4 earnings of 33 cents per share had beaten the usual suspects’ estimates by a dime. We should probably be thrilled to see the shares of a company that makes actual products in an actual factory do well relative to companies like Facebook and Netflix, which add little or nothing tangible to the economy. Still, one can only shake one’s head and wonder whether the 400% appreciation in TSLA shares over the past twelve months is a tad overdone.

Be that as it may, we are obliged to identify a new target now that the old one has been demolished. The weekly chart offers one at 222.35 that is tied to an 88 low made back in June.  Since that number, too, has been exceeded this evening, albeit by only a few dollars, there must be a still-bigger bullish pattern at work. Although there are no clear beginnings to define one, we can still use a tiny, single-bar low at 33.80 recorded last March as the point of origination (aka ‘A’).  Accordingly, our new target is 276.96, using these coordinates from the weekly chart (see inset): A=33.80; B=194.50 on 10/4; and C=116.10 on 11/29.  The midpoint pivot of this pattern lies at 196.53, and so any pullback to that number should be regarded as a buying opportunity.  Because our point ‘A’ is not of the highest pedigree, ‘camouflage’ is an absolute must when bottom-fishing. ________ UPDATE (February 26, 12:48 a.m. EST): And now we have something to explain why TSLA has been making its way to our target via leaps and bounds.  From the Rick’s Picks chat room, here’s an illuminating post attributed to the Financial Times:  “Adam Jonas, Morgan Stanley analyst, said the investment bank no longer viewed Tesla solely as a niche premium auto manufacturer following the company’s announcement that it would construct its own lithium ion battery factory. Mr Jonas says a plant – named the ‘+’ – that can produce more than 1bn cells a year has the potential to disrupt the US energy storage business and the country’s electrical grid.”