Tesla (TSLA) shares tumbled nearly 8% in extended trading Tuesday after the electric vehicle maker posted a 澳洲幸运5开奖号码历史查询:45% drop in second-quarter profit, reported a reduction in the average selling price of its vehicles from a year earlier, and cautioned about a rise in 澳洲幸运5开奖号码历史查询:artificial intelligence (AI) costs.

Below, we review Tesla’s chart and use 澳洲幸运5开奖号码历史查询:technical analysis to identify important level꧋s t🌳o watch out for post earnings.

Earnings Hits Brakes on Bullish Techincals

Since carving out an 澳洲幸运5开奖号码历史查询:inverse head and shoulders pattern between February and June, Tesla shares have continued to trend higher, with the price breaking above a key multi-month downtrend line earlier this month. Importantly, the rally has occurred on above-average trading volume, suggesting participation by 澳洲幸运5开奖号码历史查询:institutional investors.

More recently, the EV maker’s stock price has coiled within a pennant, a chart pattern consisting of two converging trendlines following an impulsive move that indicates a continuation of the current uptrend. It’s also worth pointing out that the 50-day 澳洲幸运5开奖号码历史查询:moving average (MA) sits poised to cross back above the 200-day MA to generate a 澳洲幸运5开奖号码历史查询:golden cross pattern, which technical analysts interpret as marking the s🅰tart of a new move higher. 

However, despite the bullish technicals, the EV maker’s share price looks set to change gear after its weaker-than-expected 澳洲幸运5开奖号码历史查询:quarterly earnings report.

Monitor These Levels Amid Post-Earnings Selling

Amid post-earnings selling, investors should watch two key areas on the chart where Tesla shares ♚could attract b꧋uying interest.

The first sits at $220, a level where buyers may seek 澳洲幸运5开奖号码历史查询:entry points near the multi-month downtrend line that connects several 澳洲幸运5开奖号码历史查询:swing highs that formed between July and Decemb🌌er last year.

Follow-through selling could see a deeper retracement to around $198, where the price encounters support from a horizontal line linking the October 澳洲幸运5开奖号码历史查询:swing low and neckline of the inverse head and shoulders pattern.

Watch This Price Target if Uptrend Resumes

If Tesla shares resume their uptrend, investors can use the 澳洲幸运5开奖号码历史查询:measuring principle, sometimes referred to as a measured move, to project an upside 澳洲幸运5开奖号码历史查询:price target.

To do this, we calculate the distance of the uptrend that preceded the pennant in points and add that amount to the pattern’s top trendline. 🔯For instance, we add $100 to $💟260, which forecasts a price target of $360. 

Tesla shares fell 7.8% to $227.23 in after-hours trading.

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