Tesla Stock Surges in April: Key Price Levels to Watch Amid Q1 Recovery

Important Highlights

• Tesla shares began April on a positive note after a significant decline in the first quarter, where the EV giant lost over one-third of its market value.
• Following a record peak in mid-December, Tesla's stock experienced a pronounced downtrend during Q1, reflecting a classic Elliot Wave pattern with five distinct movements.
• Investors should keep an eye on critical support levels near $225 and $186, as well as resistance points around $360 and $421 for potential trading opportunities.

Tesla (TSLA) shares kicked off April with gains after a tough first quarter that saw the stock leading the Magnificent Seven group lower, shedding more than 33% of its value.

The stock faced a nine-week consecutive weekly loss streak amid declining sales and growing concerns over CEO Elon Musk's political engagements and tariff uncertainties impacting the business. Tesla was among the weakest performers in the S&P 500 during Q1, dropping 36%.

On Tuesday, Tesla shares climbed nearly 4%, closing around $268 ahead of the anticipated Q1 delivery figures expected to be released soon. Early-year sales in Europe and China declined sharply, with analysts forecasting sluggish overall delivery numbers.

This analysis delves into Tesla’s stock chart, applying technical analysis to highlight pivotal price levels for investors to monitor closely.

Elliot Wave Pattern Analysis

After reaching a record high in mid-December, Tesla’s stock followed a steep downtrend throughout Q1, illustrating a classic Elliot Wave pattern consisting of five distinct swings.

Recently, the stock’s upward movement encountered resistance near the 200-day moving average (MA), while the relative strength index (RSI) formed a local peak just above the 50 mark.

Investors should watch for a potential death cross—a bearish signal where the 200-day MA crosses below the 50-day MA—indicating possible further declines. Conversely, if the stock holds last month's lows, it could signal the start of a new upward trend in Q2.

Let’s explore the key support and resistance levels that are critical for Tesla’s price action.

Essential Support Levels

The first major support level is around $225, where buying interest may emerge along a trendline connecting last month’s lows with previous price activity dating back to the July gap.

Should the stock fall below $225, the next support zone near $186 becomes significant. This area aligns with a former trading range from May to June and coincides with an important swing low from August, presenting potential buy-and-hold opportunities.

Key Resistance Points

A successful rally above the 200-day MA could propel Tesla shares toward $360, a level that corresponds with February’s countertrend high and minor peaks from last November.

Further upward momentum might push the stock toward $421, where investors who purchased at lower prices may consider taking profits near the January peak and late-December trough, both just shy of the all-time high.

Note: This analysis is for informational purposes only and does not constitute financial advice. Please consult a financial advisor before making investment decisions.

As of this writing, the author holds no positions in Tesla stock.

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