Watch These Tesla Price Levels as EV Maker's Stock Slumps After Earnings

Tesla (TSLA) shares tumbled astir 8% successful extended trading Tuesday aft nan electrical conveyance shaper posted a 45% driblet successful second-quarter profit, reported a simplification successful nan mean trading value of its vehicles from a twelvemonth earlier, and cautioned astir a emergence successful artificial intelligence (AI) costs.

Below, we reappraisal Tesla’s floor plan and usage technical analysis to place important levels to watch retired for station earnings.

Earnings Hits Brakes connected Bullish Techincals

Since carving retired an inverse caput and shoulders pattern betwixt February and June, Tesla shares person continued to inclination higher, pinch nan value breaking supra a cardinal multi-month downtrend statement earlier this month. Importantly, nan rally has occurred connected above-average trading volume, suggesting information by institutional investors.

More recently, nan EV maker’s banal value has coiled wrong a pennant, a floor plan shape consisting of 2 converging trendlines pursuing an impulsive move that indicates a continuation of nan existent uptrend. It’s besides worthy pointing retired that nan 50-day moving mean (MA) sits poised to transverse backmost supra nan 200-day MA to make a golden cross pattern, which method analysts construe arsenic marking nan commencement of a caller move higher. 

However, contempt nan bullish technicals, nan EV maker’s stock value looks group to alteration cogwheel aft its weaker-than-expected quarterly net report.

Monitor These Levels Amid Post-Earnings Selling

Amid post-earnings selling, investors should watch 2 cardinal areas connected nan floor plan wherever Tesla shares could pull buying interest.

The first sits astatine $220, a level wherever buyers whitethorn activity entry points adjacent nan multi-month downtrend statement that connects respective swing highs that formed betwixt July and December past year.

Follow-through trading could spot a deeper retracement to astir $198, wherever nan value encounters support from a horizontal statement linking nan October swing low and neckline of nan inverse caput and shoulders pattern.

Watch This Price Target if Uptrend Resumes

If Tesla shares resume their uptrend, investors tin usage nan measuring principle, sometimes referred to arsenic a measured move, to task an upside price target.

To do this, we cipher nan region of nan uptrend that preceded nan pennant successful points and adhd that magnitude to nan pattern’s apical trendline. For instance, we adhd $100 to $260, which forecasts a value target of $360. 

Tesla shares fell 7.8% to $227.23 successful after-hours trading.

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As of nan day this article was written, nan writer does not ain immoderate of nan supra securities.