Yahoo Finance

Key Takeaways

• Tesla shares continued their extended post-election rally on Monday, rallying to a new record high after Wedbush boosted its price target on the EV maker's stock.

• The shares have trended sharply higher after breaking out from an ascending triangle, though the relative strength index signals extremely overbought conditions, which could lead to short-term profit-taking.

• Bars pattern analysis, which extracts the stock’s sharp trending move from late June to early July and overlays it from the ascending triangle’s top trendline, forecasts a bullish target of around $510.

• Investors should monitor key support levels on Tesla's chart near $360, $300, and $265.
  

Tesla (TSLA) shares continued their extended post-election rally on Monday, rallying to a new record high after Wedbush boosted its price target on the EV maker's stock.

The investment firm lifted its price target to $515 from $400 but noted that the stock could reach as high as $650 by the end of next year, arguing that the incoming Trump administration will give the legacy EV maker’s self-driving and artificial intelligence (AI) initiatives a boost.

Through Monday’s close, Tesla shares have surged about 85% since the start of the year, with most of those gains coming after the Nov. 5 election on optimism that CEO Elon Musk’s close ties with President-elect Donald Trump will streamline the automaker’s approval processes.

The stock gained 6% in regular trading Monday and added another 2% in extended hours, trading around $472.

Below, we break down the technicals on Tesla’s chart and point out key chart levels that investors may be watching as the EV maker’s stock continues to make new highs.

Bullish Trend Moves Further into Overbought Territory

Since breaking out from an ascending triangle earlier this month, Tesla shares have trended sharply higher, with increasing trading volumes supporting the rally.

While the relative strength index (RSI) confirms bullish price momentum, the indicator also signals heavily overbought conditions, opening the door to short-term profit-taking as some investors cash in on the stock’s extended post-election gains.

Let’s turn to technical analysis to provide insight as to where the stock’s current impulsive move higher may be headed next and identify key support levels that may come into play during pullbacks.

Chart-Based Bullish Target to Watch

To forecast a bullish target in Tesla shares, investors can use bars pattern analysis, a technique that studies historical trends to predict how future directional moves may play out..