Revision of my previous TSLA chart using elliot wave principles to tighten up the levels. As a TSLA bull it pains me to post this, but a perfect 5 wave impulse has played out.
See numbered black annotations in the chart
1. Wave 1
The height range of the first wave is $88. Wave 1 Fib Levels are overlayed for the next point.
2. The main impulse wave 3
This wave included the short squeeze from Q3 earnings and the anticipation of the Cybertruck announcement.
Elliot wave states wave 3 is equal to the 1.618 of Wave 1. Overlaying Wave 1 Fib Levels on wave 3, this brings us to the $354, where major resistance and support has been found in the past. This also brings us to pre-Cybertruck announcement levels.
3. Wave 5 - The top
The upper price reached around $410
Elliot wave states the height of wave 5 equals the height of wave 1. At $410, and drawing from the base of the impulse, this distance equals an $88 range. Which if you refer back to point 1, is the height of our first wave $88.
4. We are here
We are at $405, on the minute level you can see a possible head forming.
5. ABC retracement
If we draw out a basic ABC correction, this takes us to around a price of $294, which also intersects with the ascending trendline put in place by wave 1 and 2 bottoms in Jun and Aug 2019.
Sentiment
Right now TSLA is riding high, media articles are bullish, bears are being ridiculed. I can feel the FOMO and am tempted to buy, but I can't ignore how perfect this Elliot Wave impulse is. Are we about to turn the corner?
Constructive comments and corrections welcome.
See numbered black annotations in the chart
1. Wave 1
The height range of the first wave is $88. Wave 1 Fib Levels are overlayed for the next point.
2. The main impulse wave 3
This wave included the short squeeze from Q3 earnings and the anticipation of the Cybertruck announcement.
Elliot wave states wave 3 is equal to the 1.618 of Wave 1. Overlaying Wave 1 Fib Levels on wave 3, this brings us to the $354, where major resistance and support has been found in the past. This also brings us to pre-Cybertruck announcement levels.
3. Wave 5 - The top
The upper price reached around $410
Elliot wave states the height of wave 5 equals the height of wave 1. At $410, and drawing from the base of the impulse, this distance equals an $88 range. Which if you refer back to point 1, is the height of our first wave $88.
4. We are here
We are at $405, on the minute level you can see a possible head forming.
5. ABC retracement
If we draw out a basic ABC correction, this takes us to around a price of $294, which also intersects with the ascending trendline put in place by wave 1 and 2 bottoms in Jun and Aug 2019.
Sentiment
Right now TSLA is riding high, media articles are bullish, bears are being ridiculed. I can feel the FOMO and am tempted to buy, but I can't ignore how perfect this Elliot Wave impulse is. Are we about to turn the corner?
Constructive comments and corrections welcome.
Comment:
We closed today at 425, with some interesting bearish action at open. Looking like a wave 5 extension, target around $440-445.
If you are trading this 5 wave sequence you should already be out - take the meat of the move, don't try to nail tops and bottoms.
If you are trading this 5 wave sequence you should already be out - take the meat of the move, don't try to nail tops and bottoms.
Trade closed: target reached:
There she blows. $435 top is in, about $25 off my $410 mark. Don't get me wrong - I'm a TSLA fanboy and bull. But no matter how powerful the fundamentals are for a company, elliot wave and technical analysis is still more powerful :)
Will release a new chart in the coming days. Follow along and let's find out where this bottoms out.
Will release a new chart in the coming days. Follow along and let's find out where this bottoms out.
Either way, longing here is extremely dangerous with low risk reward.