Tesla (TSLA) shares popped close to 23% Wednesday after President Trump 澳洲幸运5官方开奖结果体彩网:paused some tariffs for 90 days, before turning lower Thursday.

The electric vehicle maker's stock has faced significant selling pressure in recent weeks amid worries about 澳洲幸运5官方开奖结果体彩网:weaker-than-expected deliveries and 澳洲幸运5官方开奖结果体彩网:political backlash to CEO Elon Musk’s involvement in the Trump administration. Uncertainty over the Trump administration's tariffs have added to concerns, with Musk reportedly urging the president earlier this week to reverse Washington's sweeping import duties.

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 identi🎃fy major price levels worth watching out for amid tariff-driven volatility.

Potential Double Bottom 

After falling below the 澳洲幸运5官方开奖结果体彩网:200-day moving average in early March, Tesla shares have carved two troughs on the chart, potentially forming a 澳洲幸运5官方开奖结果体彩网:double bottom pattern.

As the most recent trough made a slightly lower low, the 澳洲幸运5官方开奖结果体彩网:relative strength index (RSI) made a comparatively shallower low to create a 澳洲幸运5官方开奖结果体彩网:bullish divergence, a chart signal that could point to waning selꦅl🌠ing momentum.

Let’s turn to Tesla’s chart to identify major overhead areas that investors may be watching and point out a key 澳洲幸运5官方开奖结果体彩网:support level worth monitoring during a sell-off.

Key Overhead Areas To Watch

An acceleration of Wednesday's buying momentum could see the shares test overhead 澳洲幸运5官方开奖结果体彩网:resistance around $289. This area may attract sellers near last month’s 澳洲幸运5官方开奖结果体彩网:swing high and the stock’s post-election 澳洲幸运5官方开奖结果体彩网:breakaway gap opening price.

A breakout above this key technical level could trigger a rally to the $360 area. The shares might encounter resistance in this location near last November’s twin peaks, which closely align with the stock’s February 澳洲幸运5官方开奖结果体彩网:countertrend high.

The next higher area to watch sits near $430. Investors who have 澳洲幸运5官方开奖结果体彩网:accumulated shares at lower prices may look for 澳洲幸运5官方开奖结果体彩网:profit taking opportunities in this region near the prominent January peak and the stock’s first dip after setting its 澳洲幸运5官方开奖结果体彩网:record high last December.

Key Support Level Worth Monitoring

However, a loss of buying momentum could see Tesla shares reverse gear to around $225. This area would likely provide support near the March and April troughs that mark the stock’s potential double bottom. The location also aligns with a range of comparable trading activity on the chart extending ꦿback to last year’s August swing high.

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.