Tesla stock has had a difficult couple of weeks after its epic run, making it a good time to check in with some technical stock market analysts to help figure out what comes next.
Coming into Friday trading, shares of the electric vehicle maker were up about 57% since the Nov. 5 U.S. presidential election, up about 65% since the Oct. 10 Robotaxi event, and up about 64% over the past 12 months. All impressive. Still, shares were down about 18% from the Dec. 17 record closing high of $479.86. The S&P 500 is down about 2% since Dec. 17.
“Tesla is in pullback mode following its big breakout,” wrote Fairlead Strategies founder and market technician Katie Stockton. “It’ll likely take a few weeks for the intermediate-term indicators to look better. Support is initially $350…secondary support is at the breakout point near $300 (I.e., former resistance).”
Stockton isn’t making a fundamental call on Tesla shares. Market technicians use stock market data to get a sense of what investors are thinking and where any stock can go over the short and medium term. In the long run, earnings—and earnings expectations—determine what stocks are ultimately worth.
Support is a level where investors have bought shares in the past. Resistance is the opposite—a level where there has been some profit-taking.
For now “it’s all about respecting support…given the preceding parabolic move,” said CappThesis founder and market technician Frank Cappelleri. He sees support a little above $350, similar to Stockton. “While the stock doesn’t need to drop that much from here, if it does fall to that cluster of support, it would be an enticing spot for prospective dip buyers.”
Upside remains between $480 to $500, according to ChartSmarter founder and market technician Douglas Busch. “That’s the play.” He’s looking for Tesla shares to hit his target in the first half of 2025.
There is, of course, no guarantee things go exactly as market technicians project. But their expertise can tell investors a lot about what traders are thinking—add between $350 and $360 and lighten up around $480.
That appears to be the new Tesla trading range for the next few months. It’s useful knowledge for anyone in the stock market.