Tesla (TSLA) shares gained floor in prolonged buying and selling on Wednesday as optimism over the automaker’s self-driving outlook trumped fourth-quarter results that got here in under Wall Road’s expectations.

CEO Elon Musk informed traders on the earnings conference call that the corporate’s full self-driving know-how continues to make vital inroads. Amongst different developments, Musk stated the corporate plans to start out utilizing the unsupervised model of the self-driving software program with Tesla autos on the firm’s Austin, Texas manufacturing unit beginning in June, with a broader public launch potential this 12 months.

Tesla stated it expects car gross sales, which fell in 2024 for the primary time, to return to progress this 12 months. The corporate additionally stated its plans for a extra reasonably priced mannequin are still on track to enter manufacturing within the first half of the 12 months, although no official announcement has been made about what the extra reasonably priced Tesla will seem like or value.

Tesla shares rose 4% to round $405 in after-hours buying and selling, after falling greater than 2% in the course of the common session. The inventory has greater than doubled over the previous 12 months, with a lot of that acquire coming because the early-November presidential election amid hopes that Musk’s shut ties with President Donald Trump will immediately profit the automaker.

Under, we take a better take a look at Tesla’s chart and apply technical analysis to establish essential worth ranges price watching out for.

Flag Sample in Focus

Since hitting a file excessive final month, Tesla shares have consolidated inside a flag, a bullish chart sample that signifies a short pause within the inventory’s uptrend earlier than one other transfer increased. Certainly, the value appears to be like units to gap above the sample’s higher trending on Thursday in a transfer that would resume the inventory’s upward momentum.

Traders also needs to look ahead to a rise in trading volume, which has been in regular decline all through the latest flag sample.

Let’s analyze Tesla’s chart to establish a longer-term bullish goal and likewise level out a number of main support levels to look at throughout potential retracements.

Bullish Value Goal to Watch

To undertaking a bullish goal, traders can use the bars sample instrument, which analyzes prior developments on the chart to forecast how a future transfer increased would possibly look.

When making use of the instrument to Tesla shares, we take the inventory’s trending transfer from October to December and overlay it from the flag sample’s decrease trendline. This predicts a goal of round $790, a location about double Wednesday’s closing worth the place traders could determine to lock in profits.

We chosen this earlier pattern because it adopted a previous consolidation interval of comparable period to the inventory’s present flag sample.

Main Assist Ranges to Monitor

Throughout dips, traders ought to initially watch the $360 stage, a location the place the shares might discover assist close to two minor peaks that fashioned on the chart in November.

Promoting under this stage might see a extra substantial fall to round $300. This space on the chart could appeal to shopping for curiosity close to the physiological round number and the distinguished July 2023 swing high, which marked the inventory’s file excessive till final November’s election-driven breakout.

Lastly, additional promoting opens the door for a decline to the $265 stage. Traders could look to accumulate shares on this area, given it finds a confluence of assist from the upward sloping 200-day moving average and a trendline that connects a number of peaks on the chart stretching again to October 2023.

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 creator doesn’t personal any of the above securities.