Tesla’s Breakout Test: Impulse or Fakeout?

Aug 23

Tesla’s recent price action is stirring interest again, not just for retail traders but also for chart technicians who track Elliott Wave structures across global equities.

After a deep corrective phase that carried price down from 488.54 to 217.02, Tesla has been carving out a multi-layered corrective structure. Here’s the breakdown:

• Wave W completed into 217.02, marking a sharp low.
  
• This was followed by a complex X wave, which included an expanded flat where the B-wave unfolded as a triangle — a rare but valid corrective formation.
  
• Wave Y then ended with a contracting triangle, neatly completing the W–X–Y correction near 297.82.
  

From that point, Tesla appears to have begun an impulsive sequence:

• Wave 1 and 2 are already visible, with the 297.82 low as the key invalidation level.
  
• A decisive break and close above 367.71 would confirm the onset of Wave 3, targeting 397.38 (1.618× Wave 1).
  
• Momentum is supporting the structure: RSI has reclaimed the 50 level, hinting at renewed strength.
  

What Next?
If the count holds, Tesla could be in the early stages of a larger impulsive rally, with Wave 1/A projecting toward the 400–420 zone. However, traders should remember that breaking below 297.82 invalidates the impulsive outlook and revives the broader corrective scenario.

Disclaimer: This analysis is for educational purposes only and does not constitute investment advice. Please do your own research (DYOR) before making any trading decisions.

Sep 16

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