Key Takeaways

Tesla ( TSLA ) shares closed higher Tuesday for the fifth straight session as the EV maker recovers some of the ground lost during a two-month selloff.

The latest gains come after an all-hands meeting last week where CEO Elon Musk urged employees to hold their Tesla shares, arguing that Wall Street doesn’t fully understand the company’s value based on its self-driving technology and robotics products. Tuesday's share price increase came despite news that Tesla's sales in the European Union fell sharply in February for the second consecutive month.

Shares of Tesla had rallied following Donald Trump's election win in November as investors were optimistic about Musk's proximity to the administration. After Trump was inaugurated in January, however, shares slumped as some investors saw Musk's involvement as hurting Tesla's brand amid declining sales and protests , along with uncertainty over how tariffs will impact its business .

The stock, which came into this week on a nine-week losing streak, is still down about 40% from its record high set in December. Tesla shares rose 3.5% on Tuesday to finish the session at $288.14—above where they were when Trump was elected—and have gained 28% over the past five sessions.

Below, we take a closer look at Tesla’s weekly chart and apply technical analysis to identify key price levels that investors may be watching.

Hammer Candles Put Brakes on Recent Selling

After briefly dropping below the 200-week moving average (MA) in recent weeks, Tesla shares have reversed gear to climb back above the closely watched indicator, forming two bullish hammer candlesticks in the process.

It’s also worth pointing out that the 50-week MA crossed back above the 200-week MA in January to form a golden cross , a respected chart pattern that indicates higher prices.

However, while the relative strength index (RSI) has turned higher for the first time since mid-January, it still remains below the 50 threshold, signaling sluggish price momentum.

Let’s identify three key areas of overhead interest on Tesla’s chart to watch and also locate important support levels that may come into play during retracements.