Tesla shares will be in focus after logging two consecutive days of losses. The stock has consolidated within a pennant chart pattern, signaling a continuation of its uptrend. A measured move technique forecasts a potential price target of $615.
Investors are looking ahead to the EV maker’s fourth-quarter deliveries report, which is expected to reveal 510,000 units sold, representing 10% growth from the prior quarter and a 5% improvement from last year. Tesla shares have surged over 70% since the Nov. 5 presidential election on expectations that CEO Elon Musk will benefit from his ties with President-elect Donald Trump.
However, the stock has lost nearly 7% in the last two trading sessions, closing at $431.66. The price is down from its all-time high of $488.54 set in December. High interest rates could weigh on vehicle sales as most buyers finance purchases.
Key support levels to watch include $360 and $300 during pullbacks. The pennant pattern signals a continuation of the stock’s uptrend, with the relative strength index (RSI) above 50, indicating healthy price momentum.
To forecast a potential upside price target, investors can use the measured move technique, which adds the distance of the impulsive move higher to the top trendline of the pennant. This targets $615 as a possible price level if the continuation move plays out.
Source: https://finance.yahoo.com/news/watch-tesla-price-levels-stock-032341339.html