Watch These Tesla Stock Price Levels as February Slump Accelerates

As February rolls on, Tesla (TSLA) shareholders are grappling with a stock price that's been on a downward spiral, shedding 18% year-to-date. With the stock breaking down below key support levels, investors are left wondering where the bottom might be. Let's dive into the critical price levels to watch as the February slump continues.



Key Support Levels to Watch

1. $325 - The February Low
* Tesla shares briefly breached this level on Monday, and it could provide support near the February low.
* This area aligns with the lower range of a consolidation period situated just under the head and shoulders’ left shoulder.
2. $265 - The 200-day MA and Trendline Support
* If the bulls fail to defend the $325 level, the shares could fall to around $265.
* This region is in proximity to the closely watched 200-day MA and a trendline that connects multiple peaks on the chart extending back to September 2023.
* Additionally, this area sits just below a projected bars pattern downside target that takes the stock’s downtrend from mid-January to early February and overlays it from this month’s countertrend high. Such a move would complete an Elliot Wave pattern with five distinct swings before a corrective phase typically occurs.



Important Overhead Areas to Monitor

1. $430 - The Head and Shoulders' Right Shoulder Resistance
* During upswings in the stock, investors should initially keep track of the $430 area.
* The shares could face selling pressure in this region near the head and shoulders’ right shoulder.
2. $489 - The Record High and Neckline Resistance
* A close above the $430 level may propel a move to around $489.
* This chart location would likely attract significant attention near the stock’s record high, which also doubles as the peak of the head and shoulders pattern.

As the February slump continues, investors should keep a close eye on these key support and resistance levels. Breaking below these critical support levels could signal a further decline in the stock, while overcoming the overhead resistance areas could indicate a potential turnaround in Tesla's price action. By staying attuned to these price levels, investors can better position themselves to capitalize on potential opportunities in the stock.

In conclusion, as Tesla's stock price continues to decline in February, investors should watch for key support levels around $325 and $265, as well as important overhead areas near $430 and $489. By monitoring these critical price levels, investors can make informed decisions about when to buy or sell the stock, ultimately helping them navigate the volatile market landscape.