Tesla (TSLA) shares jumped in prolonged buying and selling on Tuesday as CEO Elon Musk’s feedback through the EV maker’s earnings name overshadowed quarterly results that got here in effectively under Wall Road expectations.

Musk told investors and analysts that, beginning subsequent month, he shall be allocating far more of his time to Tesla and fewer to operating the Division of Authorities Effectivity. The feedback got here after Tesla reported bigger-than-expected declines in income and revenue, as the corporate’s automotive enterprise slumped amid decrease volumes and sagging common gross sales costs.

Tesla shares have confronted heavy promoting stress in current months over considerations that Musk’s lively involvement within the Trump administration has harm the corporate’s model and gross sales. The inventory is down 41% because the begin of the 12 months as of Tuesday’s shut, considerably underperforming the S&P 500’s 10% drop over the identical interval. Tesla shares gained 5.4% to $250.80 within the after-hours session.

Beneath, we take a more in-depth take a look at Tesla’s weekly chart and apply technical analysis to establish key post-earnings price levels that buyers will possible be monitoring.

Pennant Sample in Focus

Since breaking down from an ascending broadening formation final month, Tesla shares have consolidated inside a pennant pattern forward of the corporate’s quarterly outcomes.

Whereas trading volume eased final week, share turnover has usually elevated because the inventory discovered an area backside in early March, indicating that bigger market individuals had positioned forward of time for a big post-earnings transfer. Certainly, the shares look set to pop on Wednesday’s open, setting the stage for a possible breakout above the month-long pennant sample.

Let’s establish two key overhead areas which will come into play amid results-driven shopping for and in addition find essential support levels price watching throughout potential profit-taking intervals.

Key Overhead Areas to Monitor

A decisive breakout from the pennant sample might see Tesla shares climb to $315. Tactical merchants who anticipated a post-earnings rally might search for profit-taking alternatives on this space close to the excessive of a outstanding countertrend rally that fashioned on the chart in August 2022.

The following overhead space to trace sits round $384. This stage on the chart might present overhead promoting stress close to a short interval of consolidation under the inventory’s December excessive, with the world additionally lining up with the April 2022 peak.

Essential Help Ranges Price Watching

A breakdown under the pennant sample might initially set off promoting right down to $206. The shares might encounter assist on this area close to final February’s countertrend swing high and vary of corresponding price action on the chart between June and September.

Lastly, promoting under this stage might see Tesla shares revisit decrease assist round $170. Buyers might search entry points on this location close to a interval of sideways drift that developed on the chart all through most of Might and June final 12 months.

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