Watch These Tesla Price Levels as Stock Hits Brakes on Post-Election Rally | Global News Avenue

Tesla (TeslaShares fell 4% yesterday and were little changed in early trading on Tuesday amid uncertainty over new electric vehicles (EVs) in California tax credit and downbeat comments from analysts at UBS.

On Monday, California Governor Gavin Newsom said the state would offer electric vehicle tax credits if the Trump administration eliminates them at the federal level. However, Newsom added that the rebates will promote innovation and competition in the industry. Zero Emission Vehicles (ZEV) market, suggesting they will work for smaller electric car makers than Tesla.

Yesterday, UBS analyst Joseph Spak said in a research note that the stock’s recent post-election rally was driven by “animal spirits” rather than a fundamental change in the company.

Tesla shares have soared about 35% since Election Day as investors bet on the CEO Elon Musk’s A close relationship with the president-elect would benefit automakers, possibly through relief Autonomous driving regulations. The stock was up slightly to around $339 in recent premarket trading on Tuesday.

Below, we take a closer look at the technicals on Tesla’s chart and identify important price levels to watch.

intraday reversal

After getting out of trouble ascending triangle Tesla shares were higher for about a week after Donald Trump won the election earlier this month, then consolidated. pennanta chart pattern that shows continue The stock’s current upward trend.

However, Tesla’s recent bullish price momentum may have temporarily stalled after shares initially climbed to their highest level in more than two years on Monday before plunging midday. reverse It closed near the day’s low. also, Relative Strength Index (RSI) turn low to form a head and shoulders– Similar to the top pattern on the indicator.

Let’s use technical analysis find the key support level On Tesla’s chart, investors can look at pull back and predicts a bullish price target Monitor if the stock resumes its move higher.

Key support levels worth paying attention to

First, it’s worth keeping an eye on the $310 level, where the stock on the chart could attract buying interest near the lows of the pennant pattern.

A break below this level could see the stock drop to around $265. This area – about 22% below Monday’s close – could encounter significant support at the top of the ascending triangle trend linewhich is currently adjacent to the rising 50-day moving average.

Bullish price targets to monitor

To predict bullish targets, investors can use histogram patterns, a chart-based technique that analyzes previous price bars to predict future movements.

When applying this tool to Tesla’s chart, we use trend Take the price bars immediately preceding the pennant and reposition them from the top trendline of the pattern. The target for this is around $500, a price the stock could reach if a bullish continuation move materializes.

The reviews, opinions and analyzes expressed on Investopedia are for informational purposes only. read our Warranty and Disclaimer Learn more.

As of the date of this writing, the author did not own any of the securities mentioned.