Since 2019, Tesla has enjoyed a 1993% increase in value (from $44 to $900) thanks to Elon's cult following and an undeniably great line of products. While well deserved, the Tesla train has just completed is 5th Wave of Primary Wave 1. With Tesla euphoria at an all-time high, Wave 2 has quietly begun to initiate its sharp push downward. In anticipation of the likely zig-zag (535/ABC) correction, we can begin to calculate a potential target for the end of Wave 2.
As many of you know, the formation of a zig-zag develops as 5(A) waves down (in this case), 3(B) waves up and another 5(C) waves down (typically of the same length as Wave A). With a tentative calculation of Wave A reaching the $150-$175 zone, that equates to roughly a $700 drop from the $900 ATH range. Considering price action's wide view outlook, it can be presumed that B (3 waves up) makes a return to $725-$750. From this range we can subtract the length of Wave A (roughly $700) and find a target around the range of $30-$50. This price range also equates to 1.618 of A (another common target for C wave; with 100% of A and 1.618 of A landing in the same zone, we can become a bit more confident in the assumption).
$30 - $50 would also be in the range of both 0.50 and 0.618 Fibonacci targets, also common zones for Wave 2 to come to an end.*
*Fibonacci targets based on the run from $3 to the $900 range (Wave 1).*
Based on these findings, I believe Tesla's stock price will go under $150 in the first half on 2022 and then under $60 in 2023-2024; price targets we will likely never see again post correction.
As many of you know, the formation of a zig-zag develops as 5(A) waves down (in this case), 3(B) waves up and another 5(C) waves down (typically of the same length as Wave A). With a tentative calculation of Wave A reaching the $150-$175 zone, that equates to roughly a $700 drop from the $900 ATH range. Considering price action's wide view outlook, it can be presumed that B (3 waves up) makes a return to $725-$750. From this range we can subtract the length of Wave A (roughly $700) and find a target around the range of $30-$50. This price range also equates to 1.618 of A (another common target for C wave; with 100% of A and 1.618 of A landing in the same zone, we can become a bit more confident in the assumption).
$30 - $50 would also be in the range of both 0.50 and 0.618 Fibonacci targets, also common zones for Wave 2 to come to an end.*
*Fibonacci targets based on the run from $3 to the $900 range (Wave 1).*
Based on these findings, I believe Tesla's stock price will go under $150 in the first half on 2022 and then under $60 in 2023-2024; price targets we will likely never see again post correction.
Comment:
In the next week or two, we should see $800-$850 but I anticipate a long season of downside afterwards.
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