Tesla (TSLA) shares can be in focus to start out the week after logging two consecutive days of losses, as traders reassess the inventory’s prolonged post-election rally and look forward to the EV maker’s fourth-quarter deliveries report.

Wall Road predicts the deliveries quantity, which is expected to be released on Thursday, to come back in round 510,000 models, which might characterize 10% development from the prior quarter and a 5% enchancment from a yr earlier.

Because the Nov. 5 presidential election, Tesla shares have surged greater than 70% on expectations that CEO Elon Musk’s ties with President-elect Donald Trump and rising affect in Washington will profit the automaker’s autonomous driving ambitions.

Tesla shares misplaced almost 7% over the past two buying and selling classes, closing Friday at $431.66. The inventory is down from an all-time excessive of $488.54 set on Dec. 18, the identical day the Federal Reserve mentioned that it will probably slow the pace of interest rate cuts in 2025. High interest rates might weigh on automobile gross sales as most consumers finance purchases.

Under, we take a more in-depth have a look at the technicals on Tesla’s chart and level out necessary value ranges to be careful for.

Pennant Sample Takes Form

Tesla shares trended sharply greater for a number of weeks after breaking out from an ascending triangle in early December, however have since consolidated inside a pennant, a chart sample that alerts a continuation of the inventory’s uptrend.

Whereas the relative strength index (RSI) has continued to fall since topping out close to the inventory’s all-time high (ATH) in mid-December, it stays above 50, pointing to wholesome value momentum.

Let’s apply technical analysis to forecast a price target in Tesla shares and likewise establish a number of main support levels that will come into play throughout pullbacks.

Measured Transfer Value Goal

To forecast a possible upside value goal if a continuation transfer performs out, traders can use the measured transfer method, often known as the measuring principle.

When making use of the instrument to Tesla’s chart, we calculate the gap in points of the impulsive transfer greater that preceded the pennant and add that quantity to the sample’s prime trendline. On this case, we add $150 to $465, which tasks a goal of $615, an space the place traders might resolve to lock in profits.

Main Assist Ranges to Watch

A breakdown under the pennant’s decrease trendline might initially see Tesla shares revisit the $360 degree, a location at the moment simply above the upward sloping 50-day moving average the place they could discover help close to the ascending triangle’s prime development line.

An in depth under this space opens the door for a retest of the $300 degree. Buyers might search shopping for alternatives on this area close to the psychological round number and the inventory’s outstanding July 2023 swing high.

The feedback, opinions, and analyses expressed on Investopedia are for informational functions solely. Learn our warranty and liability disclaimer for more information.

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