The price of Tesla (NASDAQ:TSLA) had been going down in a 5 waves manner, which was followed by a double zigzag correction, implying the next possible move will be another 5 waves decline The only 2 possible patterns which can be formed in 5-3-5 are either an impulse (5-3-5-3-5) or a zigzag (5-3-5) Therefore we can set two targets for this trade (or just separate as 2 trades) For the first one, assuming we enter a short at $713, the stop loss will be $780.72 (above the end of wave b), the take profit will be $467.96 (assuming wave c = wave a), which give us a 1:3.6 risk/reward ratio For the second one, the take profit will be $341.07 (assuming wave c = 1.618 x wave a), which give us a 1:5.4 risk/reward ratio
Im really feeling like you're onto something here... What you were saying about the possibilities that can arise makes a lot of sense... From what i can make out of my own analysis it looks a heck of a lot like a lot of people are looking at a 5 day time span and arent looking at the larger gap that happened at the end of last year. We've closed our 5 day chart's gap... (but the thing is -- it looks eerillly similar to the shape we get when looking at a full year (6mos rly) ... ppl are getting bullish, though... Ive not seen ANYONE say TSLA is going down UNLESS its someone who has sat down and done some actual charting.... The way i see it --- we OUGHT to see 667 tomorrow or within the next 2-3 days (it woulld make sense for that to happen prior to earnings... but we got bulls in a china shop, automated driving PR, a general EV push by the gov, tesla having killed in their last delivery report.. and all that leading into an earnings call... ---- It wont be the chart that weighs in the heaviest.... bc it was honestly already astonishing that it made the comeback it made today... It's seeming like a bit of zig-zagging consolidation which is just wonky from ppl who are impulsive right now... People lwill buy tomorrow morning becuase.... there was a comeback today. --__-- if that winds up pushing it past 737 we'll see 780 by end of week.
Do you think there will be more upside after hitting $468 level? Everybody is talking about TSLA will hit $1000 after this correction. But the market seems to climax without TSLA.
wivanz
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@Piperchap, not sure at this moment, need to see how the price unfold
Piperchap
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@wivanz, oh I’m asking if you think the Elliot wave of TSLA is over topping at $900 or $900 was the top of the 3rd wave and 5th wave is coming later. Just curious how you see it from the Elliot wave perspective. Thanks!
wivanz
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@Piperchap, I think there is a 5 waves completion, but I can't tell if it is a higher degree wave 1, 3 or 5 at this stage
I agree, though I'm long only so I'm just looking to BTD at support.
SaeedSajedi
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Well Done! your analysis is generally nice. there is a point here : typical projection of wave A for wave C is 100% not 1.618...1.618 is typical projection for wave 3 . I think your first suggestion for end of correction (467) is more probable
One more point is a trade above 780.72 may still be subdivision of wave C of B and wave B in this case will complete at around 825 which corresponds to 0.786 retracement ( which in this case wave 2 is more probable).
I am sure that you will make a huge profit on TSLA. Considering alternative scenario shows that you are a wise and experienced trader.
Good Luck .