TESLA: New long term uptrend starting. $600 end of year possible

Tesla has turned oversold on its 1D technical outlook (RSI = 27.952, MACD = -6.270, ADX = 56.430) and crossed under the 1W MA200 for the first time since October 30th. Even though further decline up until the Fed Meeting (January 31st) is possible, on a wider perspective, this is a long term buy opportunity in disguise.

Why? Because the stock's Channel Down since July is repeating the same pattern of April-November 2016, which was eventually a Bullish Flag. The chart speaks for itself, they both started very low but grew exponentially on a parabolic curve, which after topping, it pulled back to the 1W MA200. After the Bullish Flag, Tesla hit the -0.118 Fibonacci extension seven months later. The 1W RSI patterns are equally identical.

It is therefore more than realistic to expect a test of the new -0.118 Fibonacci level by the end of the year (TP = 600.00).

See how our prior idea has worked out:


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