Tesla Inc (NASDAQ:TSLA) shares are in need of a recharge. But it’s not so much that they lack power as much as direction. TSLA stock has spent the past three months traveling a circuitous route to nowhere. And while one quarter’s performance means little to Buffett-like investors with forever hold times, traders looking to game multimonth trends are finding its recent wishy-washy action troublesome.

But perhaps hope is on the horizon.

Dip buyers were on the move Tuesday, scooping up stocks across the board as they viewed the down gap as a chance to grab some goodies at a discount. Tech stocks, in particular, scored a strong bullish engulfing candle that may portend higher prices to come.

This should bode well for Tesla stock. It has been searching for a catalyst and maybe yesterday’s dip-n-rip is just the ticket.

By the way, you can check out the sea of bullish candles by glancing at the charts of anyone from Amazon.com, Inc. (NASDAQ:AMZN) and Alphabet Inc (NASDAQ:GOOGL) to Netflix, Inc. (NASDAQ:NFLX) and Facebook Inc (NASDAQ:FB). But enough about its peers — let’s zero in on the action in TSLA.

Tesla Charts

On the weekly time frame, TSLA stock leaves little reason for concern. Although it suffered a distribution-laced downturn in early July, bears were unable to breach the 20-week moving average. Their failure meant the stock was able to maintain the integrity of its uptrend.

More recently, Tesla shares did form a lower pivot high striking a slightly more neutral tone. But it’s difficult to get overly bearish on this larger time frame until at least one support level is broken. Until then, buyers deserve the benefit of the doubt.

Things become decidedly more neutral when moving to the daily time frame.

Though the early July swoon didn’t damage the weekly view, it did reverse the daily trend. Since then, Tesla stock has been floundering. The 50-day moving average now is sliding sideways which confirms the stock’s neutral posture. And then there’s the Relative Strength Index (RSI) indicator, which also is fiddling in the middle. We haven’t seen an overbought or oversold signal since June, suggesting neither buyers nor sellers have been able to wrest control fully.

Finally, there’s the pair of lower pivot highs and higher pivot lows formed in recent months. Combined, these pivots have created a symmetrical triangle pattern, once again reflecting a neutral bias.

Throw it all together, and it’s challenging to make a confident bullish or bearish forecast, at least from a technical perspective. Traders intent on making a directional bet here would be well-served in waiting for a break one way or the other before pulling the trigger.

Buyers should watch for a break above resistance at $357, and sellers should wait for a break below support at $332.

How to Game the Neutrality in TSLA Stock

If you’re looking to capitalize on continued neutrality in Tesla shares, then sell an iron condor. Sell the Oct $300/$295 bull put for 60 cents and sell the Oct $400/$405 bear call for 50 cents. Consider this condor position a bet that Tesla shares remain between $300 and $400 for the next 51 days.

The max reward is limited to the total net credit of $1.10 received at trade entry. You will pocket the entire profit if both option spreads expire worthless at expiration.

The max risk of the position is $3.90 and will be lost if TSLA stock falls below $295 or rises above $405 by expiration.

As of this writing, Tyler Craig did not hold a position in any of the aforementioned securities. Want to learn how to master the art of option selling for high-probability cash flow? Check out Tyler’s recently released video series through Tackle Trading on how to systematically sell iron condors for monthly income.