Looking at a daily chart for Tesla we can see what has the potential for being a ABC correction wave from its drop last year.
While the current trend is still bullish a lower high or a brake of the last high, grabbing the liquidity above, with a wick back below would be a clear indication that a pull back to the main trend is possibly on it's way.
The previous all time high has a clear swing failure pattern by braking above its previous high dropping back below it and then retesting the same level with a rejection.
IF price manages to make its way back to the main trend it will have an opportunity to redeem it's self but a brake of the main trend would be another clear indication of more potential down side.
For down side targets the next support level below the current low is also corresponding with a previous fair value gap and the golden pocket retrace level of 50-61.8%.
This evaluation has nothing to do with the viability of TESLA or its future but is rather a expression of the liquidity cycle; based on the value of and availability of the currencies used to purchase these assets.
While the current trend is still bullish a lower high or a brake of the last high, grabbing the liquidity above, with a wick back below would be a clear indication that a pull back to the main trend is possibly on it's way.
The previous all time high has a clear swing failure pattern by braking above its previous high dropping back below it and then retesting the same level with a rejection.
IF price manages to make its way back to the main trend it will have an opportunity to redeem it's self but a brake of the main trend would be another clear indication of more potential down side.
For down side targets the next support level below the current low is also corresponding with a previous fair value gap and the golden pocket retrace level of 50-61.8%.
This evaluation has nothing to do with the viability of TESLA or its future but is rather a expression of the liquidity cycle; based on the value of and availability of the currencies used to purchase these assets.
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Trouble in Tesla Town?
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230 by 8/10?
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this has hit the trend will it bounce?
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Alot of people have a hard time with idea of a short sale. A little hard to defend longing a move from 275-165... and consistently mock anybody that ended up on the right side. With that said tesla has been absolutely hammered and while these projections are pointing out extremes in the $70-$100 range price could reverse at any time. When it is ready to reverse the tape provides clear indication that buyers are easily overwhelming sellers instead of the exact opisite occuring on the chart still.
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I simply focus my trading on extremes and could care less about what the herd thinks and does as they are wrong 90+%. Extremes don't always produce winning trades either. They are simply the only place on the board where risk is the lowest and reward is the highest. Speculation is a business driven by data and unfortunately not driven by media dope that reenfoces a directional feedback loop that simply pushes price in one direction or the other so far it simply must reverse.
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relief rally over? hard to say. the forcast calls for the extreme and we may see it....
