Channel - A minor uptrend exists within a main downtrend. For TESLA to officially transition into an uptrend, it must break the main downtrend and surpass the significant prior high at $313.5.
Symmetrical projection: An uptrend N pattern - By projecting a 100% symmetry projection of the initial swing from point A to B, and extending it from point C. - As the expected symmetric pullback to E from D did not occur, I anticipate a further 100% extension of the primary bullish momentum (A to B) from D to F ($384.6). The target price level aligns perfectly with the starting point of the primary downtrend, further enhancing the significance of the target price.
Resistance level on the way - The significant prior high at $313.5 represents a critical resistance level as the market must break through it to officially reverse the downtrend.
Support/ Defence levels for bulls - The prior low at $241 is a key support level that shouldn’t be broken, if the market intends to sustain the uptrend. The level aligns with two critical Fibonacci levels, adding its importance.
The 0.5 Fibonacci retracement level of the primary downtrend from point X to point A.
The 0.618 Fibonacci retracement level from point C to point F (assuming the target price of $384.6 marks the end of the uptrend).
- If the price manages to sustain above the current level at $268, it would create the ideal scenario for a healthy uptrend. This is because $268 serves as both the original target price at level D and the 0.786 Fibonacci retracement level of the nearest downswing from point X to point A.
**Not Financial Advice** The information contained in this article is not intended as, and should not be understood as financial advice. You should take independent financial advice from a professional who is aware of the facts and circumstances of your individual situation.
Comment
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The key level at $268 seems held, indicating a potential for the uptrend to sustain. Once the price closes above the high at $284, we can officially adjust the prior low level to $268. However, there are two resistances ahead:
The pressure from the main downtrend.
The pressure from the upper band of the minor uptrend.
If the market aims to continue the uptrend, it would be nice to see a large bullish candle with high volume that breaks through these two resistances. Otherwise, the price might oscillate between the downtrend line and the $268 level.