Tesla’s stock has recently experienced a decline, with two consecutive days of losses as investors await the company’s fourth-quarter delivery report. The stock price is currently consolidating within a pennant chart pattern, which suggests a potential continuation of its upward trend. Technical analysis indicates a projected price target of $615, calculated by measuring the prior rally and adding it to the pattern’s upper trendline. However, cautious investors should monitor key support levels near $360 and $300 as the stock pulls back.
Expectations are high for Tesla’s upcoming delivery announcement, with Wall Street anticipating around 510,000 units, marking a 10% increase from the previous quarter and a 5% increase year over year. Following the November 5 presidential election, Tesla’s stock gained over 70% due to the perceived favorable relationship between CEO Elon Musk and President-elect Donald Trump, boosting investor optimism regarding the company’s growth and self-driving initiatives.
Recently, Tesla’s stock fell nearly 7% and closed at $431.66, down from its all-time high of $488.54. The overall market sentiment is cautious, particularly with interest rates expected to influence auto sales. Analyzing the stock charts shows that the Relative Strength Index (RSI) has been declining but remains above 50, indicating some level of buying momentum.
The pennant pattern indicates that if Tesla’s stock breaks below its lower trend line, it could drop to the key support level around $360. If this support level fails, the stock might retest the psychological barrier at $300, where some investors may seek buying opportunities. Overall, surveillance of these support levels and market trends will be crucial for investors in the upcoming days.