Tesla Stock Price Levels to Watch After EV Maker's 32% Third-Quarter Gain

Key Takeaways

• Tesla shares are likely to remain on watchlists after gaining 32% in the third quarter, as the company prepares for a big October of potential market-moving events.
• The stock has moved above a long-term downtrend line and the 200-week moving average in recent weeks.
• Investors should monitor important higher price levels on Tesla's chart around $265, $300, and $400, while eyeing the key $225 region as a possible support area during periods of weakness in the stock.

Tesla (TSLA) shares are likely to remain on watchlists after gaining 32% in the third quarter, as the company prepares for a big October of potential market-moving events.

In recent months, investors have bid up the EV maker’s stock amid growing expectations of an upbeat third-quarter vehicle delivery report, due on Wednesday, and anticipation ahead of the company’s “Robotaxi Day,” scheduled for Oct. 10, an event where Tesla is expected to provide further details about an upcoming self-driving vehicle service. Meanwhile, the automaker also reports quarterly earnings later in October, setting the stage for a potentially volatile month for the stock.

Below, we zoom out on Tesla’s weekly chart and use technical analysis to identify important price levels to watch out for amid the EV pioneer's big October.

Breakout From Multi-Year Downtrend Line

Tesla shares broke above a multi-year downtrend line on above-average volume in early July but subsequently retraced to the initial breakout area over the remainder of that month.

Sentiment shifted gear in early August after buyers successfully defended the neckline of an inverse head and shoulders, a chart pattern signaling a potential market bottom. 

Indeed, since that time, Tesla shares have trended sharply higher, moving back above both the long-term downtrend line and the respected 200-week moving average.

Throughout October, investors should monitor three higher price levels and an important support area on Tesla’s chart likely to attract attention.

Higher Price Levels to Monitor

The first overhead level to watch sits around $265, an area just below Monday’s close of $261.63 where the shares could encounter selling pressure near several important peaks and troughs that formed on the chart between February 2022 and July this year.

A decisive breakout above this level could see a test of the $300 area, where the stock may run into resistance near three prominent swing highs that formed in January 2021, August 2022, and July last year. Interestingly, this area also roughly aligns with a bars pattern price target that extracts Tesla’s trending move higher from January to July last year and positions it from the April low.

Further buying could see Tesla bulls drive the price towards the key $400 region, a location on the chart where investors may seek exit points near a range of comparable trading levels positioned just below the stock's record high.

Key Support Level to Watch

During periods of weakness, investors should monitor the $225 level, where the stock may attract support near the May 2022 swing low, an area which also sits in close proximity with a series of similar price action from October 2022 to August this year.

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