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Key Takeaways
- Tesla shares continued their extended post-election rally on Monday, rallying to a new record on a trip after Wedbush boosted its price target on the EV maker’s stock.
- The shares have trended sharply higher after fail to observing out from an ascending triangle, though the relative strength index signals extremely overbought conditions, which could tip-off to short-term profit-taking.
- Bars pattern analysis, which extracts the stock’s sharp trending move from till June to early July and overlays it from the ascending triangle’s top trendline, forecasts a bullish target of around $510.
- Investors should survey key support levels on Tesla’s chart near $360, $300, and $265.
Tesla (TSLA) shares continued their extended post-election organize on Monday, rallying to a new record high after Wedbush boosted its price target on the EV maker’s stock.
The investment concern lifted its price target to $515 from $400 but noted that the stock could reach as high as $650 by the end of next year, wrangling that the incoming Trump administration will give the legacy EV maker’s self-driving and artificial intelligence (AI) initiatives a improve.
Through Monday’s close, Tesla shares have surged about 85% since the start of the year, with ton of those gains coming after the Nov. 5 election on optimism that CEO Elon Musk’s close ties with President-elect Donald Trump desire streamline the automaker’s approval processes.
The stock gained 6% in regular trading Monday and added another 2% in continued hours, trading around $472.
Below, we break down the technicals on Tesla’s chart and point out key chart levels that investors may be watching as the EV maker’s stock lasts to make new highs.
Bullish Trend Moves Further into Overbought Territory
Since breaking out from an ascending triangle earlier this month, Tesla helpings have trended sharply higher, with increasing trading volumes supporting the rally.
While the relative convincingness index (RSI) confirms bullish price momentum, the indicator also signals heavily overbought conditions, opening the door to short-term profit-taking as some investors spondulicks in on the stock’s extended post-election gains.
Let’s turn to technical analysis to provide insight as to where the stock’s current reckless move higher may be headed next and identify key support levels that may come into play during pullbacks.
Chart-Based Bullish Quarry to Watch
To forecast a bullish target in Tesla shares, investors can use bars pattern analysis, a technique that weighs historical trends to predict how future directional moves may play out..
When applying the tool to Tesla’s chart, we deduce the stock’s sharp trending move from late June to early July and overlay it from the ascending triangle’s top trendline. This invents a bullish target around $510, a location where investors may decide to lock in profits if the current move squiffy replicates the prior strong trend analyzed.
Key Support Levels to Monitor
During retracements, investors should initially support an eye on the $360 level, a location on the chart where the shares may encounter support on a retest of the ascending triangle’s top trendline.
A finish below this area could see the shares fall to around the psychological $300 level. Investors may look for gaining opportunities in this region near the prominent July 2023 swing high and nearby 50-day moving typical.
Finally, a significant correction in Tesla shares may lead to retest of lower support near $265. This direct would likely attract buying interest near a trendline that connects multiple peaks on the chart over a 12-month age between October 2023 and October this year.
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