Tesla Stock (TSLA): Key Price Levels and Compass for Traders [Jan 02, 2025]

Tesla (TSLA) is currently trading above its developing value area low (VAL) at $401.91 of today, a critical support level that aligns closely with key levels from December 10th at $400.39 and $400.99. These levels, along with the psychological $400 round number, mark a significant support zone where the market recently reversed upward after an 18% decline from its all-time high of $488. Below is a detailed breakdown of key price levels and guidance for traders navigating Tesla’s next moves.

Key Levels for Tesla Bulls

Immediate Support and Reversal Zone

• $401.91: Today’s developing value area low (VAL). Holding above this level is crucial for the bullish reversal to remain intact.
• $400.39–$400.99: Key historic support levels from December 10, situated just above the psychological $400 round number.

Upside Resistance and Profit-Taking Zones

• $411.57: A previous naked level, likely to act as initial resistance if price continues upward.
• $413.15: Yesterday’s VWAP, a significant level that bulls must conquer to sustain momentum.
• $416.56: Yesterday’s value area high (VAH). Breaking this level is critical for a potential test of the highs of the ATH, and even a lower double top relative to the all-time high.
• $418.80: The value area low (VAL) of December 20, another likely resistance where partial profit-taking may occur.
• $436.00: A significant naked level that could act as a magnet for further bullish moves. If reached, traders are expected to take partial profits.

Key Levels for Tesla Bears

Breakdown Levels Below Support

• $400: A psychological level and critical support zone. Sustained trading below this level would signal a bearish shift.
• $374–$379: The next significant support zone, marking a potential additional 6% downside from current levels.

Broader Context: Tesla’s Decline and Reversal Potential

Tesla has declined 18% from its all-time high, a significant correction that has likely prompted profitable shorts to reduce their positions, leading to buying activity. The current bounce from the $401 area suggests a potential reversal in play. However, for the bullish move to gain traction, price must overcome key resistance levels, particularly $413.15 (yesterday’s VWAP) and $416.56 (yesterday’s VAH).

These levels are not random but represent key liquidity zones where professional traders and algorithms will monitor price action closely. Watching how Tesla reacts at these junctions is essential for both bulls and bears.

What Tesla Traders Should Be Watching

• Above $401.91: Bulls remain in control, with resistance at $411.57, $413.15, $416.56, and $418.80. Further upside targets include $436 and potentially higher.
• Below $400: A bearish shift occurs, with targets at $374–$379 for additional downside.
• Profit-Taking Levels: Traders should consider taking partial profits at resistance levels such as $416.56, $418.80, and $436, especially if playing the long side from the recent reversal near $401.91.

These levels are key junctions where liquidity and significant price reactions are likely. Always monitor price action around these levels to make informed trading decisions.

Trade Tesla (TSLA) at your own risk, and for additional insights, visit ForexLive.com.

This article was written by Itai Levitan at www.forexlive.com.