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Last week, Tesla (TSLA) - Get Free Report shares began to show signs of upside exhaustion. On Wednesday, the stock stretched its powerful rally off the early-December low to nearly 45%. This impressive seven-week move has remained inside a steep bull channel with very little in the way of a pullback.

As a new week begins, shares of Tesla are on the verge of a healthy pullback.

Two weeks after holding major support near the $178, Tesla mounted a powerful breakout. The stock jumped nearly 3% on Dec. 13, sparking a fresh rally leg that would drive shares well past the summer highs. During this bull phase, the stock left behind layers of support.

With momentum easing dramatically of late, nearby support will likely be tested. A very strong support zone was left in place about a week ago after the Tesla took out the $240 area. Ahead of the company's Feb. 8 earnings report, this is a key level to watch.

In the near term, further upside for Tesla is possible, but it may be very limited. Ahead of earnings, patient investors may be presented with a lower-risk entry opportunity than currently available. A dip back down to the $241 to $237 area would retest a very solid support zone that includes the March, June and August highs of last year. A fresh base here would give the stock a much-deserved rest.

Prior to a strong earnings report, the stock would be on very solid footing. 

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This article is commentary by an independent contributor. At the time of publication, the author was long TSLA.