The Key Takeaways
- Tesla shares rose to an all-time record Wednesday. The stock has gained more ground than ever before for the six consecutive days, continuing a post-election rally that is gaining momentum.
- Tesla’s shares continue to rise sharply since breaking through an ascending triangle in early November, following the elections.
- This principle calculates the percent change in the lower and upper trendlines of the triangle and then adds that to the top trendline’s value. It predicts a bullish target price of $585.65.
- Investors should watch key support levels on Tesla's chart around $380 and $300.
Tesla shares (TSLA), which have been soaring since the election, reached a record high on Wednesday. The stock has gained for six consecutive days and is continuing its massive post-election rally.
Analysts on Wall Street have been bullish about the EV company. Goldman Sachs has said the company could reap the benefits of artificial intelligence, and Morgan Stanley’s Adam Jonas has named it as one of his top picks. “Top Pick.”
Tesla shares rose by 5.9%, to $424.77. This is the highest level since November 20,21. Since the election last month, shares of Tesla have increased by 70%. This is due to optimism about CEO Elon Musk’s close relationship with Donald Trump.
We analyze Tesla’s technicals and highlight key price levels for investors to watch out for, as the stock enters blue-sky territory.
Tringle Breakout Ascending Accelerates
Tesla’s shares continue to rise sharply since breaking through an ascending triangle following the election.
A reading of the relative strength (RSI), above 70, confirms a bullish trend in price. However, the indicator warns about overbought stock conditions, which increases the likelihood that short-term profits will be taken.
As the share price has moved to a price-discovery mode, we will turn to technical analyses to predict a possible bullish target price, as well as to identify key support levels that you should keep in mind during any pullbacks.
Bullish Price Target
The measuring principle is also called by chart viewers the measured movement technique.
For Tesla, to apply this tool we add the value of the top trendline to the lower trendline and calculate the difference in percentage between them. We can, for example, apply a 121% rise to $265 to project a bullish goal of $585.65. This is a range where investors are likely to be happy to lock-in profits.
The Key Support Levels Monitor
Investors are advised to monitor $380 as a starting point during retracements. This area is approximately 11% below the closing price of Wednesday. It may be a good place to find support.
Tesla stock may fall below $300 if the bulls are unable to maintain this level. Investors could try to buy shares near this psychological number, and the trendline connecting a series highs from July 2022 through July of last year.
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According to the article, as of its date of publication, the author did not hold any of these securities.
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