With the decline in price yesterday, it seems 61.8% for wave c of (b) was resistance enough and Tesla is ready to continue the downtrend. First target is 540, after that, the drop in price should accelerate with 420 as a target.
We have strong support around 470 corresponding to 50% retracement of the large 5 cycle rally from 35 to 900. Why you count wave C as abc man? It should be and it is 5 wave down impulse.
jdemunter
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@SaeedSajedi, Yes you are correct, it is actuallly a wave Y in a double three corrective wave from the 900 high. The reason i don't change the labels yet is because it can still transform into a real was C, like an ending diagonal. It can also still become a triangle. Also i find that wxy labels are a lot more confusing for people not as familiar with EW. As for your 50% level, price can overshoot and spike through 470 to go to 420 or even lower for a short time.
SaeedSajedi
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@jdemunter, Wave A is 5 wave impulse. So more than likely we are in zigzag correction. Its not double three yet since we have not completed wave C yet. Wave C in most cases is 5 wave impulse down. About next target, if 470 falls next is 370-420 Agree. You probably have seen my ideas about TSLA.
Good luck.
bjorn2z
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@SaeedSajedi, @jdemunter,
Both of you are doing excellent work on TSLA!
Once we break below 590, the question for me is not so much about 470 or 450 or 420.
How about the 540 support which made a double bottom in March and in May?
Will 540 and the next round number 500 fail easily on the third test?
SaeedSajedi
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@bjorn2z, Thanks my friend. I think 540 fails this time but 500 may push up price for a while.