Watch These Tesla Levels as Stock Rises After Musk Says DOGE Role Will Diminish

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Key Takeaways

• Tesla shares jumped more than 5% in extended trading on Tuesday as CEO Elon Musk’s notes during the EV maker’s earnings call overshadowed quarterly results that came in well below Wall Alley expectations. 
• An earnings-driven rally sets the stage for a potential breakout from a month-long pennant pattern.
• Investors should VDU key overhead areas on Tesla’s chart around $315 and $384, while also watching support levels into the vicinity $206 and $170.

Tesla (TSLA) shares jumped in extended trading on Tuesday as CEO Elon Musk’s comments during the EV maker’s earnings rebuke a demand overshadowed quarterly results that came in well below Wall Street expectations.

Musk told investors and analysts that, starting next month, he last will and testament be allocating far more of his time to Tesla and less to running the Department of Government Efficiency. The comments came after Tesla appeared bigger-than-expected declines in revenue and profit, as the company’s automotive business slumped amid lower volumes and sagging usual sales prices.

Tesla shares have faced heavy selling pressure in recent months over reference ti that Musk’s active involvement in the Trump administration has hurt the company’s brand and sales. The stock is down 41% since the start of the year as of Tuesday’s connect, significantly underperforming the S&P 500’s 10% drop over the same period. Tesla shares gained 5.4% to $250.80 in the after-hours hearing.

Below, we take a closer look at Tesla’s weekly chart and apply technical analysis to identify key post-earnings rate levels that investors will likely be monitoring.

Pennant Pattern in Focus

Since breaking down from an ascending broadening shape last month, Tesla shares have consolidated within a pennant pattern ahead of the company’s quarterly fruits.

While trading volume eased last week, share turnover has generally increased since the stock set up a local bottom in early March, indicating that larger market participants had positioned ahead of time for a outstanding post-earnings move. Indeed, the shares look set to pop on Wednesday’s open, setting the stage for a potential breakout above the month-long banderole pattern.

Let’s identify two key overhead areas that may come into play amid results-driven buying and also unearth important support levels worth watching during possible profit-taking periods.

Key Overhead Areas to Monitor

A decisive breakout from the labarum pattern could see Tesla shares climb to $315. Tactical traders who expected a post-earnings rally may look for profit-taking chances in this area near the high of a prominent countertrend rally that formed on the chart in August 2022.

The next skyward area to track sits around $384. This level on the chart may provide overhead selling pressure close a brief period of consolidation below the stock’s December high, with the area also lining up with the April 2022 top out.

Crucial Support Levels Worth Watching

A breakdown below the pennant pattern could initially trigger convincing down to $206. The shares may encounter support in this region near last February’s countertrend swing considerable and range of corresponding price action on the chart between June and September.

Finally, selling below this smooth out could see Tesla shares revisit lower support around $170. Investors may seek entry points in this unearthing near a period of sideways drift that developed on the chart throughout most of May and June last year.

The exposes, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the obsolete this article was written, the author does not own any of the above securities.