• Tesla stock takes a breather after an impressive election bull run
• Overbought conditions detected; sellers eye 320 support level

Tesla’s stock shifted to the sidelines after its electrifying election-driven rally halted near a two-and a half year high of 357.

The doji candlestick pinned at the top of the 70% bull charge and the overbought signals coming from the RSI and the stochastic oscillator foresee a change in market sentiment. 

Yet, for the bears to take control in the short-term, the price must slide below the 23.6% Fibonacci retracement of the pandemic upleg at 320. The area has been providing solid support over the past two days and a violation there could cause more downside, squeezing the price toward the 307 constraining area. Additional declines from there may stall near 285 and then around the 263 zone, where the 20-day simple moving average (SMA) and the 38.2% Fibonacci mark are placed.

On the flip side, a bounce off the 320 region may attempt to surpass the 360 number with scope to test the April 2022 bar of 382. Even higher, the bulls could head for the 400 round level and the tentative resistance line from April 2024. A test of the all-time high of 412 cannot be ruled out either.

In brief, the latest vertical rally in Tesla’s stock could induce some profit-taking in the coming sessions, particularly if the price crosses below the 320 floor. However, given Elon Musk’s appointment within the Trump administration, the bull trend could stay intact.