Despite all the doom and gloom and “sky is falling” talk, TSLA has been acting remarkably tame and forming a corrective Double Zig Zag (3-3-3) or possibly a FLAT (3,3,5 with last subwave 5 of the C of the FLAT still to be put in).
As can see, we are forming a series of ABC’s that are sub waves of the larger W-X-Y double zig zag I have shown. This is classic corrective pattern behavior.
The bottom we placed yesterday happened to be EXACTLY at the point where Y = W in a 1:1 relationship (shown above).
The parallel corrective channel seems to be holding the corrective pattern well so far too.
If this is the correct count then either we have already placed the bottom in and will get a minor retrace tomorrow (without breaking the low) as shown on the RED path up - OR - we have to put in a final slightly lower low which would be subwave 5 of C of Y as shown on the GREEN path up.
If we do get a break of the low I strongly believe it will be a BEAR TRAP so watch out!
We have FOMC tomorrow and TSLA earnings after the close.
So expect fireworks and a decisive day tomorrow and Thursday for either a new bear market on TSLA or a strong bounce up as we head to new all time highs. I believe the latter is the most likely scenario playing out.
I am aggressively bullish and on Monday I placed half my intended position size into $1400 March Calls with the other half to be placed tomorrow if we get a slight new low. If we break the Monday highs I will place the other half of my position in the above Calls.
Good luck everyone!
As can see, we are forming a series of ABC’s that are sub waves of the larger W-X-Y double zig zag I have shown. This is classic corrective pattern behavior.
The bottom we placed yesterday happened to be EXACTLY at the point where Y = W in a 1:1 relationship (shown above).
The parallel corrective channel seems to be holding the corrective pattern well so far too.
If this is the correct count then either we have already placed the bottom in and will get a minor retrace tomorrow (without breaking the low) as shown on the RED path up - OR - we have to put in a final slightly lower low which would be subwave 5 of C of Y as shown on the GREEN path up.
If we do get a break of the low I strongly believe it will be a BEAR TRAP so watch out!
We have FOMC tomorrow and TSLA earnings after the close.
So expect fireworks and a decisive day tomorrow and Thursday for either a new bear market on TSLA or a strong bounce up as we head to new all time highs. I believe the latter is the most likely scenario playing out.
I am aggressively bullish and on Monday I placed half my intended position size into $1400 March Calls with the other half to be placed tomorrow if we get a slight new low. If we break the Monday highs I will place the other half of my position in the above Calls.
Good luck everyone!