Shares of Tesla (TSLA) continued their extended post-election rally on Monday, hitting a new record high after Wedbush raised his price target on the electric vehicle maker’s stock.

The investment firm raised its price target to $515 from $400, but noted that the stock could reach as high as $650 by the end of next year, arguing that the new Trump administration is giving the legacy electric vehicle maker autonomous Driving and artificial intelligence (AI) will exist. Give initiatives a boost.

As of Monday’s close, Tesla shares were up about 85% year-to-date, with most of those gains coming after the Nov. 5 election amid optimism about CEO Elon Musk’s close ties with President-elect Donald Trump will streamline the automaker’s approval processes.

The stock rose 6% in regular trading on Monday and gained another 2% in extended trading, trading at around $472.

Below, we break down the Tesla chart technicals and point out key chart levels that investors may be keeping an eye on as the electric vehicle maker’s stock continues to reach new highs.

The uptrend continues to move into overbought territory

Since breaking out of an ascending triangle earlier this month, Tesla shares have seen a significant uptrend, with rising trading volumes supporting the rally.

While the Relative Strength Index (RSI) confirms bullish price momentum, the indicator also signals heavily overbought conditions, opening the door for short-term profit-taking as some investors benefit from the stock’s extended post-election gains.

Let’s turn to technical analysis to gain insight into where the stock’s current impulsive upward move could lead next and to identify key support levels that could come into play during pullbacks.

Chart-based bullish target to keep an eye on

To predict a bullish target in Tesla stock, investors can use bar pattern analysis, a technique that examines historical trends to predict how future directional moves might play out.

When we apply the tool to the Tesla chart, we extract the stock’s strong trend movement from late June to early July and overlay it with the upper trendline of the ascending triangle. This creates a bullish target around $510, an area where investors could decide to lock in profits if the current upward move mirrors the strong trend analyzed previously.

Important support levels to monitor

For retracements, investors should initially keep an eye on the $360 level, a point on the chart where shares could find support on a retest of the ascending triangle’s upper trendline.

A close below this range could see shares fall to around the psychological level of $300. Investors could look for buying opportunities in this region near the prominent July 2023 swing high and the nearby 50-day moving average.

Finally, a significant correction in Tesla shares could lead to a retest of the lower support at $265. This level would likely attract buying interest near a trendline connecting multiple peaks on the chart over a 12-month period between October 2023 and October this year.

The comments, opinions and analyzes expressed on Investopedia are for informational purposes only. Please see our Warranty and Disclaimer for more information.

At the time of writing, the author does not own any of the securities mentioned above.