I already made it clear in my last analysis that I see Tesla short in the medium term. Now that further candles have formed on the chart, the situation can be assessed more accurately.
Chart-technical assessment
- Tesla currently appears to be in a correction. - Only wave A has been formed so far, so there is a certain expectation that another wave (C) of the correction is coming. - At the moment, the last sell-off is being consolidated in a pennant. A break of the lower trend lines should generate renewed momentum towards the south. - As a classic trend continuation formation, an ABCDE formation is formed in a pennant. Two more waves can be expected within the pennant.
Options
- If the pennant is broken to the upside, the short scenario is in acute danger. - If the golden pennant breaks around 770 points, the scenario is obsolete. - The price target of a breakout on the downside is the zone around 400 points.
Best wishes & success!
Max
Comment
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The breakout occurred on the upside. Now we have to wait and see. If the price turns at the GP, there is a chance of a trend reversal that would lead to a trade if the lower trend lines are broken.
If Tsla had stayed below the 50 day, certainly possible your lower move would be in play. Now, doubtful. Now a double top just may be in play.
greenpasture936
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I agree. We are looking at the 400 range short term for a solid bottom.
CRV_Trader
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@greenpasture936, well then, let's hope for the best, i'd really like to get back into it then
saturdayigor
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if this was the target for the C wave, wouldn't mean that the 408-top is wave 5 and wave 4 ended at 408? if I remember the chart correctly, then wave 3 is too short with that counting... is that so?
CRV_Trader
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@saturdayigor, I can't see that happening. To me it looks clean as it is
Wizceguy
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Possible Senario! Long until 775ish and and will evaluate the chart for a potential Short! Good Work!