Tesla (TSLA) shares gained ground in extended trading on Wednesday as optimism over the automaker's self-driving outlook trumped 澳洲幸运5官方开奖结果体彩网:fourth-quarter results that came in below Wall Street’s expectations.

CEO 澳洲幸运5官方开奖结果体彩网:Elon Musk told investors on the earnings 澳洲幸运5官方开奖结果体彩网:conference call that the company’s full self-driving technology continues to make s🍸ignificant inroads. Among other developments, Musk said the company plans to start using the unsupervised version of the self-driving software with Tesla vehicles at the company's Austin, Texas factory starting in June, with a broader public release possible this year.

Tesla said it expects vehicle sales, which fell in 2024 for the first time, to return to growth this year. The company also said its plans for a more affordable model are 澳洲幸运5官方开奖结果体彩网:still on track to enter production in the firs🅰t half of the year, though no official announcement has been made about what the more affordable Tesla will look l🅺ike or cost.

Tesla shares rose 4% to around $40꧟5 in after-hours trading, after falling more than 2% during the regular session. The stock has more than doubled over the past 12 months, with much of that gain coming since the early-November presidential election amid hopes that Musk’s close ties with Presཧident Donald Trump will directly benefit the automaker.

Below, we take a closer look at Tesla’s chart and apply 澳洲幸运5官方开奖结果体彩网:technical analysis to i𒈔dentify crucial price levels worth watching out for.

Flag Pattern in Focus

Since hitting a record high last month, Tesla shares have 澳洲幸运5官方开奖结果体彩网:consolidated within a flag, a bullish chart pattern that indicates a brief pause in the stock’s uptrend before another move higher. Indeed, the price looks sets to gap above🐓 the pattern’s upper trending on Thursday in a move that could resume the stock’s upward momentum.

Investors should also watch for an increase in 澳洲幸运5官方开奖结果体彩网:trading volume, which has been in steady decline thro🍌ughout the recent fl𓂃ag pattern.

Let’s analyze Tesla’s chart to identify a longer-term bullish target and also point out several major 澳洲幸运5官方开奖结果体彩网:support levels to watch during possible retracements.

Bullish Price Target to Watch

To project a bullish 🍸target, investors can use the bars pattern t🔯ool, which analyzes prior trends on the chart to forecast how a future move higher might look.

When applying the tool to Tesla shares, we take the stock’s trending move from October to December and overlay it from the flag pattern’s lower trendline. This predicts a target of around $790, a location about double Wednesday’s closing price where investors may decide to 澳洲幸运5官方开奖结果体彩网:lock in profits.

We selected this earlier trend as it followed a prior consolidation period of similar duration to the stock's current flag pattern.

Major Support Levels to Monitor

During dips, investors should initially watch the $360 level, a location where the shares could find support near two minor peaks that formed on the chart in November.

Selling below this level could see a more substantial fall to around $300. This area on the chart may attract buying interest near the 澳洲幸运5官方开奖结果体彩网:physiological round number and the prominent July 2023 澳洲幸运5官方开奖结果体彩网:swing high, which marked thꦇe stock’s record high until last Novembe𝓀r’s election-driven breakout.

Finally, further selling opens the door for a decline to the $265 level. Investors may look to 澳洲幸运5官方开奖结果体彩网:accumulate shares in this region, given it finds a 澳洲幸运5官方开奖结果体彩网:confluence of support from the upward sloping 澳洲幸运5官方开奖结果体彩网:200-day moving average and a trendline that connects multiple peaks on the char꧃t stretching back to October 2023.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our 澳洲幸运5官方开奖结果体彩网:warranty and liability disclaimer for more info.

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