Watch These Tesla Price Levels as Stock Drops Following 4 Weeks of Gains

Tesla (TSLA) shares fell on Monday, a sluggish start to the week for a stock that had posted gains in each of the previous four weeks.

The downturn to start this week came as technology conglomerate Xiaomi announced that its new electric YU7 SUV will launch in China on Thursday, likely challenging Tesla’s popular Model Y for market share in the competitive mid-size electric SUV category.

During their four-week winning run, Tesla shares gained 45%. Sentiment has received a boost lately from the cooling of global trade tensions, including lower tariffs, and CEO Elon Musk’s commitment to spend more time running the company, all of which have helped offset concerns about declining sales. The stock fell more than 2% to around $342 on Monday.

Below, we take a closer look at Tesla’s chart and use technical analysis to identify key price levels worth watching out for.

Uptrend Consolidation

Tesla shares continued trending higher after breaking out above the neckline of a triple bottom pattern earlier this month, through the price has consolidated in recent trading sessions as investors assess the stock’s next move.

Despite the minor retracement that has coincided with declining volume, the relative strength index remains just below the 70 threshold, confirming bullish price momentum.

Let’s identify several important support and resistance levels on Tesla’s chart that investors will likely be monitoring.

Support Levels to Monitor

The first lower level to monitor sits around $289. The shares could encounter buying interest in this area near the triple bottom pattern’s neckline, which may flip from a location of prior resistance into future support.

Further selling in the stock opens the door for a decline to the $271 level. Investors may look for entry points in this region near the 50-day moving average and a horizontal line that connects a range of corresponding trading activity on the chart extending back to last July’s prominent swing high.

Important Resistance Levels to Watch

A resumption of the current uptrend could see Tesla shares initially climb to around $430. This area on the chart may provide overhead selling pressure near the mid-January countertrend peak and the stock’s first minor pullback after setting its record high in mid-December.

This location also aligns with a projected bars pattern target that takes the stock’s trend higher in early May and overlays it from Monday’s low. This analysis speculates that a basic Elliot Wave pattern comprising five distinct price swings may be playing out.

Further upside could fuel a rally toward the $489 level. Investors who have purchased shares at lower prices may decide to lock in profits in this region near the stock’s all-time high, especially if other technical indicators were confirming overbought conditions at the same time.

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As of the date this article was written, the author does not own any of the above securities.