Yahoo Finance

Key Takeaways

• Tesla shares jumped nearly 7% on Tuesday, hitting their highest level since early February, after CEO Elon Musk said he is focusing more of his attention on running the EV maker.

• The stock staged a breakout above a pennant in Tuesday’s trading session, setting the stage for a new move higher.

• Investors should watch major overhead areas on Tesla's chart around $430 and $489, while also monitoring key support levels near $325 and $289.

Tesla (TSLA) shares surged Tuesday after CEO Elon Musk said he is focusing more of his attention on running the EV maker.

“Back to spending 24/7 at work and sleeping in conference/server/factory rooms,” Musk posted on his X social media platform on Saturday. The billionaire added that he needs to remain focused on upcoming critical technologies, possibly referring to the EV maker’s highly anticipated Robotaxi launch in Austin next month.

Tesla shares fell sharply between mid-December and early April amid concerns that Musk was too focused on his work leading the U.S. government's cost-cutting department, DOGE. However, the stock has rebounded since Musk told investors last month that he would soon start spending more time at Tesla. While the shares are still down 10% since the start of the year, they have surged more than 60% from their early-April low.

The stock gained nearly 7% to around $363 on Tuesday, hitting its highest level since early February.

Below, we analyze the technicals on Tesla’s chart and point out major price levels worth watching out for.

Pennant Pattern Breakout

After climbing above a triple bottom formation and the 200-day moving average (MA), Tesla shares trended higher before consolidating in pennant, a chart pattern that signals a continuation of the stock’s uptrend.

Indeed, the price staged a breakout above the pennant in Tuesday’s trading session, setting the stage for a new move higher.

It’s worth noting the relative strength index confirms bullish price momentum, though the indicator has moved into overbought territory, increasing the chances of short-term profit-taking.

Let’s identify two major overhead levels on Tesla’s chart to watch and also locate support levels worth monitoring during potential pullbacks.

Major Overhead Areas to Watch

The first overhead area to watch sits around $430. This level may provide resistance near the January countertrend peak, which also closely aligns with a brief dip after the stock hit its record high in mid-December.

It’s worth pointing out this location roughly corresponds with a projected bars pattern target that extracts the price bars comprising the uptrend that preceded the pennant and repositions them from today’s breakout point. This analysis projects how a continuation move could unfold on Tesla’s chart.