The most bearish count presented yesterday didn't work out and it now seems price is going higher for the near term. There's an old support/resistance zone around 670 and the big daily trendline which can act as resistance now. Anything near 700 is a very nice price to exit long / enter short. Price is still in a wave (b) of c(circle) and 420 remains the target.
The count presented is the most bearish count, where wave (b) has already finished and the downtrend resumes. Alternative counts show more strength in the near term. This rally is very fragile and can break back into the bigger downtrend without warning. Catching a top is hard, but the higher is goes the better a short position looks.
The size of this move up needs an adjustment to the EW count, the bigger timeframe count remains the same, 420 as target. The question is, how high will this wave (b) go? It could already be over. If there's another leg higher, to even test the broken trendline, it will be fast in time. Should this rally become bigger and take much longer, an alternative wave b...
Tesla is back at the resistance zone around 590. Look for price to drop from here.
Yesterday price broke below 560, the next target is 540. Look for a big spike lower on this break.
Yesterday price rallied but the resistance at 590 was too strong, pushing price back down. This puts price back on track to break the 560 low first and 540 not much later.
Yesterday Tesla found resistance in the previous low around 590. A break of 560 is expected, followed by a break of 540, which is the wave a(circle) low. This is the minimum price for wave c(circle) but opens the road to 420.
Tesla is still in a downtrend and needs to break the wave a(circle) low at 539.60 to finish wave c(circle). A break of 626.70 would suggest a retest of the daily trendline is coming.
Tesla is still in a strong trend down. The next big support is the wave a(circle) support at 540. When this breaks there will be another push lower.
Staying short is the name of the game for Tesla. Some support is in the way but the trend down is too strong. Buying the dip will not work this time. In strong market corrections like this, remember that surprises come to the downside.
The daily trendline broke and price has been falling hard for the last 2 days. This is only the beginning, price will go much lower. The question now is how high will price go before the next big drop? Will the broken trendline be retested? The current size of this countertrend rally wave (b) is pretty small so a bigger rally to the trendline is possible. However...
Tesla broke the trendline yesterday. This means lower prices are coming soon. Expect a small rally to retest the broken trendline in the form of wave (b). After that, price will continue the bearish trend.
The small downward wedge broke to the upside only to be in a bigger downward wedge now. Price is also still stuck between the channel and the daily trendline. There are a couple of EW counts at this time where wave (a) is almost done or done already. How high wave (b) will go depends of when price will break the daily trendline. If it breaks while still in wave...
Tesla broke the channel to downside but is still above the daily trendline. There are a couple of EW counts possible at this time. The key level is 650. Is this the end of a first part of wave C(circle) with wave C(circle) ending lower, Should 650 be counted as wave A(circle) or has wave C(circle) ended at 650 already. Looking at how price is forming a downward...
Yesterdays price action was slow and sideways. A triangle B(circle) fits in nicely here. The alternative is bigger corrective wave higher, double three or flat. Price should not go above 715 for this count to remain valid. Price is still flirting with the channel support line, if it breaks there's a good possibility of a strong move lower.
Price didn't go up to 750 as expected but the EW count remained intact, wave b finished at 715 instead. But now Tesla is in the danger zone. The channel (red) and the daily trend line (black) are acting as support. When price breaks these trend lines, price could drop significantly. A first stop should happen around 600 followed by a retest of the broken trend...
Price followed 2 of the 3 steps expected, it broke through the first support, bounced of the second but did not find resistance in previous support. This resistance now seems to be higher around 750. If price goes this high, it will be a very long time before price goes there again.
Not much has happened since yesterdays post, but i wanted to share this hourly chart which shows the support zones. First one is the one price is currently in. This is about to break lower to the next support zone. This second area has a lot of things to support price. The 100% fib extension from the wave b(circle) top, the trendline from the wave a(circle) low,...