🔸Clearly, Tesla has been one of the most relevant Stocks of 2020. Both for its exponential rise and for its split.
🔸We can see in this daily chart that after the split, the stock has been consolidating since then.
🔸As in any strong trend, when the price consolidates in a range, it tends to break it in the direction of the movement in order to continue the direction
.
🔸In the case of Tesla, each consolidation that the price made this year had the same behavior, so we can consider that now the same phenomenon can happen.
The exciting thing about the current situation is that the consolidation is of GREAT size, which implies a more significant accumulation, and, consequently, the subsequent movement that may come will also be of great magnitude.
🔸This is the reason why our movement targets are approximately a 50% increase in the first one and almost a 100% increase in the second.
🔸All corrective movements follow a specific pattern, according to the figure they form.
In this case, we can clearly define that the figure has a 5-wave corrective pattern, A B C D E, and, theoretically, it is already finished.
🔸How do we recommend operating this structure?
The way in which we will place our position will be as follows:
- The entry point must go above the local Resistances of the figure, that is, above the area of (B) and (D) (Around $ 480).
- The safest and most conservative point for Stop Loss is below the absolute minimum of the structure (A). Of course, if you want a more aggressive entry, you can consider Stop Loss below (C) or (E). The higher the risk, the higher the Risk-Benefit ratio.
- And finally, regarding the take profit, we will use the Fibonacci extensions from the previous impulse since the price, being at historical highs, does not have close resistance.
🔸We can see in this daily chart that after the split, the stock has been consolidating since then.
🔸As in any strong trend, when the price consolidates in a range, it tends to break it in the direction of the movement in order to continue the direction
.
🔸In the case of Tesla, each consolidation that the price made this year had the same behavior, so we can consider that now the same phenomenon can happen.
The exciting thing about the current situation is that the consolidation is of GREAT size, which implies a more significant accumulation, and, consequently, the subsequent movement that may come will also be of great magnitude.
🔸This is the reason why our movement targets are approximately a 50% increase in the first one and almost a 100% increase in the second.
🔸All corrective movements follow a specific pattern, according to the figure they form.
In this case, we can clearly define that the figure has a 5-wave corrective pattern, A B C D E, and, theoretically, it is already finished.
🔸How do we recommend operating this structure?
The way in which we will place our position will be as follows:
- The entry point must go above the local Resistances of the figure, that is, above the area of (B) and (D) (Around $ 480).
- The safest and most conservative point for Stop Loss is below the absolute minimum of the structure (A). Of course, if you want a more aggressive entry, you can consider Stop Loss below (C) or (E). The higher the risk, the higher the Risk-Benefit ratio.
- And finally, regarding the take profit, we will use the Fibonacci extensions from the previous impulse since the price, being at historical highs, does not have close resistance.
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