Tesla (TSLA) shares were little changed early Tuesday after falling 4% yesterday amid uncertainty over new California electric vehicle (EV) 澳洲幸运5官方开奖结果体彩网:tax credits and bearish commentary from analysts at UBS.

On Monday, California Governor Gavin Newsom said that the state would provide EV tax credits if the Trump administration removed them at the federal level. However, Newsom added that the rebates would promote innovation and competition in the 澳洲幸运5官方开奖结果体彩网:zero emission vehicle (ZEV) market, suggesting that they would apply to smaller EV makers than Tesla.

Sentiment may have also taken a dent yesterday after UBS analyst Joseph Spak said in a research note that the stock’s recent post-election run up had been driven by “澳洲幸运5官方开奖结果体彩网:animal spirits,” rather than fundamental changes at the company.

Tesla shares have surged around 35% since election day, with investors betting that CEO 澳洲幸运5官方开奖结果体彩网:Elon Musk’s close relationship with the President elect will benefit the automaker, possibly through eased 澳洲幸运5官方开奖结果体彩网:self-driving regulations. The stock was up slightly at around $339 i💝n recent premarket trading Tuesday.

Below, we take a closer look at the technicals on Tesla's chart and identify important price levels worth watching out for.

Intraday Reversal

After breaking out from an 澳洲幸运5官方开奖结果体彩网:ascending triangle earlier this month following Donald Trump’s election victory, Tesla shares trended higher for about a week before consolidating in a pennant, a chart pattern that signals a 澳洲幸运5官方开奖结果体彩网:continuation of the stock’s current uptrend.

However, Tesla’s recent bullish price momentum may have temporarily hit the skids after the shares initially climbed to their highest level in more than two years on Monday before undergoing an intraday reversal to close near the day’s low. Moreover, the 澳洲幸运5官方开奖结果体彩网:relative strength index (RSI) turned lower to form a 澳洲幸运5官方开奖结果体彩网:head and shoulders-like topping pattern on the indicator.

Let’s use 澳洲幸运5官方开奖结果体彩网:technical analysis to locate key 澳洲幸运5官方开奖结果体彩网:support levels on Tesla’s chart that investors may watch during a pullback and forecast a bullish 澳洲幸运5官方开奖结果体彩网:price target to monitor if🐟 the stock resumes its move higher.

Key Support Levels to Watch

Firstly, it’s worth keeping an ey🌸e on the $310 level, a location on the chart where the shares could attract buying interest near the low of the pennant pattern.

A breakdown below this level could see the shares fall to around $265. This area — around 22% below Monday’s closing price — would likely encounter significant support from the ascending triangle’s top 澳洲幸运5官方开奖结果体彩网:trendline, a region that currently sits in close proximity to the rising 澳洲幸运5官方开奖结果体彩网:50-day moving average.

Bullish Price Target to Monitor

To forecast a bullish target, investors 👍can use a bars pattern, a chart-based technique that analyzes prior price bars to predict future moves. 

When applying this tool to Tesla’s chart, we take the trending price bars that immediately preceded the pennant and reposition them from the pattern’s top trendline. Doing so projects a target of aroun♎d $500, the price the stock may reach if a bullish continuation move plays out.

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