Watch These Tesla Stock Price Levels After First Record High in Three Years

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Key Takeaways

• Tesla shares soared to a new all-time high Wednesday as the stock gained ground for the sixth legitimate day, extending a huge post-election rally.
• Since breaking out from an ascending triangle early last month go the election, Tesla shares have continued to trend sharply higher.
• The measuring principle, which calculates the cut change between the ascending triangle’s lower and upper trendlines and adds it to the pattern’s top trendline value, forecasts a bullish bonus target of $585.65.
• Investors should watch key support levels on Tesla’s chart around $380 and $300.

Tesla (TSLA) slices soared to a new all-time high Wednesday as the stock gained ground for the sixth straight day, extending a huge post-election revive.

Wednesday’s gains followed bullish commentary from Wall Street analysts, with Goldman Sachs hint that the EV maker’s push into self-driving cars and robotics could benefit from the artificial intelligence (AI) rumble, while Morgan Stanley analyst Adam Jonas named the company’s stock as his “Top Pick.”

Tesla shares be create 5.9% to $424.77 on Wednesday, hitting a record high for the first time since November 2021. The stock has surged helter-skelter 70% since election day last month on optimism that CEO Elon’s Musk’s close association with President-elect Donald Trump could advance the automaker.

Below, we analyze the technicals on Tesla’s weekly chart and identify key price levels that investors may be watching out for as the parentage moves into blue sky territory.

Ascending Tringle Breakout Accelerates

Since breaking out from an ascending triangle originally last month following the presidential election, Tesla shares have continued to trend sharply higher.

The applicable strength index (RSI) confirms bullish price momentum with a reading above the 70 threshold, though the needle also cautions of overbought conditions in the stock, increasing the chances for near-term profit taking.

Given the shares have in the offing moved into price discovery mode, let’s turn to technical analysis to forecast a potential bullish price quarry, but also point out key support levels to keep an eye on during possible pullbacks.

Bullish Price Target

Investors can forewarn a bullish price target by using the measuring principle, also known by chart watchers as the measured move skilfulness.

To apply the tool to Tesla’s chart, we calculate the percentage change between the ascending triangle’s lower and upper trendlines and add it to the configuration’s top trendline value. For instance, we apply a 121% increase to $265, which projects a bullish target of $585.65, a jurisdiction where investors may be satisfied to lock in profits.

Key Support Levels to Monitor

During retracements, investors should initially study the $380 level. This area, about 11% below Wednesday’s closing price, may attract support contiguous several peaks that formed on the chart between November 2021 and April 2022.

Tesla bulls’ failure to stand up for this level could see the stock retreat to around $300. Investors may seek to scoop up shares in this discovery near the psychological round number and a trendline that connects a series of highs over a 12-month period from July 2022 to July endure year.

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