Technical Analysis on WHY TESLA will continue falling to the market price of 400 before rising again.
Rationale for the Drop
1. Fibonacci expansion levels have reached and surpassed exhaustion levels at 4.236 for quite some time.
2. Double Top created
3. Pennant/rising wedge with a flagpole is forming
4. Monthly Chart RSI indicates that this stock has been OVERBOUGHT to the MAX!
Rationale for the Rise at 400.00
1. When doing a new Fibonacci Retracement downwards from the market price of 893.00 to 540.00 the retracement level of the Fibonacci Golden Zone of 0.618 is sitting at structure level at the market price of 760.00
2. When you follow up with applying the Fibonacci Expansion from the market price of 893.00 to 540.00 you safe Fibbonacci Take Profit Level for a SELL/SHORT Position is sitting on 400.00 which is also on Fibonacci Expansion Level of 1.
3. When you do a new Fibonacci retracement from the market price of 40.00 to 893.00 Golden Zone Fibonacci Level of 0.618 is also sitting on 400.00
To conclude, I would prepare to sell my existing Tesla stock when the market price reaches 760.00 and look for buy positions when market reaches 400.00.
Rationale for the Drop
1. Fibonacci expansion levels have reached and surpassed exhaustion levels at 4.236 for quite some time.
2. Double Top created
3. Pennant/rising wedge with a flagpole is forming
4. Monthly Chart RSI indicates that this stock has been OVERBOUGHT to the MAX!
Rationale for the Rise at 400.00
1. When doing a new Fibonacci Retracement downwards from the market price of 893.00 to 540.00 the retracement level of the Fibonacci Golden Zone of 0.618 is sitting at structure level at the market price of 760.00
2. When you follow up with applying the Fibonacci Expansion from the market price of 893.00 to 540.00 you safe Fibbonacci Take Profit Level for a SELL/SHORT Position is sitting on 400.00 which is also on Fibonacci Expansion Level of 1.
3. When you do a new Fibonacci retracement from the market price of 40.00 to 893.00 Golden Zone Fibonacci Level of 0.618 is also sitting on 400.00
To conclude, I would prepare to sell my existing Tesla stock when the market price reaches 760.00 and look for buy positions when market reaches 400.00.
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