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

Tesla (TSLA) shares soared to a brand new all-time excessive Wednesday because the inventory gained floor for the sixth straight day, extending an enormous post-election rally.

Wednesday’s good points adopted bullish commentary from Wall Street analysts, with Goldman Sachs saying that the EV maker’s push into self-driving automobiles and robotics may benefit from the synthetic intelligence (AI) increase, whereas Morgan Stanley analyst Adam Jonas named the corporate’s inventory as his “Top Pick.”

Tesla shares rose 5.9% to $424.77 on Wednesday, hitting a file excessive for the primary time since November 2021. The inventory has surged about 70% since election day final month on optimism that CEO Elon’s Musk’s shut affiliation with President-elect Donald Trump may benefit the automaker.

Below, we analyze the technicals on Tesla’s weekly chart and determine key worth ranges that traders could also be watching out for because the inventory strikes into blue sky territory.

Ascending Tringle Breakout Accelerates

Since breaking out from an ascending triangle early final month following the presidential election, Tesla shares have continued to development sharply larger.

The relative energy index (RSI) confirms bullish worth momentum with a studying above the 70 threshold, although the indicator additionally cautions of overbought circumstances within the inventory, rising the possibilities for near-term revenue taking.

Given the shares have moved into worth discovery mode, let’s flip to technical evaluation to forecast a possible bullish worth goal, but in addition level out key help ranges to keep watch over throughout potential pullbacks.

Bullish Price Target

Investors can forecast a bullish worth goal through the use of the measuring precept, additionally identified by chart watchers because the measured transfer approach.

To apply the instrument to Tesla’s chart, we calculate the share change between the ascending triangle’s decrease and higher trendlines and add it to the sample’s high trendline worth. For occasion, we apply a 121% improve to $265, which initiatives a bullish goal of $585.65, a area the place traders could also be glad to lock in earnings.

Key Support Levels to Monitor

During retracements, traders ought to initially monitor the $380 stage. This space, about 11% under Wednesday’s closing worth, might entice help close to a number of peaks that shaped on the chart between November 2021 and April 2022.

Tesla bulls’ failure to defend this stage might see the inventory retreat to round $300. Investors might search to scoop up shares on this location close to the psychological spherical quantity and a trendline that connects a sequence of highs over a 12-month interval from July 2022 to July final yr.

The feedback, opinions, and analyses expressed on Investopedia are for informational functions solely. Read our guarantee and legal responsibility disclaimer for more information.

As of the date this text was written, the writer doesn’t personal any of the above securities.