Elliott Wave Analysis: TESLA With Bearish Setup Formation
Hello traders and investors!
Yesterday we shared $AAPL Apple and today we want to show you another, similar wave structure on $TSLA Tesla.
As you can see, Tesla made an impulsive five-wave drop in February, which actually suggest a reversal from the top into a higher degree correction, as five-wave cycle is barely the first leg A of a three-wave A-B-C corrective movement.
Well, recent recovery looks like a complex w-x-y corrective rally in wave B, which is now trading at key resistance zone here at the channel resistance line around 61,8% - 78,6% Fibonacci retracement.
So, if we are on the right path and if Tesla starts sharply falling back below 700 region, then we should be really aware of much bigger sell-off within wave C that can push the price even down to 500-400 support zone.
Be humble and trade smart!
If you like what we do, then please like and share our idea!
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
Yesterday we shared $AAPL Apple and today we want to show you another, similar wave structure on $TSLA Tesla.
As you can see, Tesla made an impulsive five-wave drop in February, which actually suggest a reversal from the top into a higher degree correction, as five-wave cycle is barely the first leg A of a three-wave A-B-C corrective movement.
Well, recent recovery looks like a complex w-x-y corrective rally in wave B, which is now trading at key resistance zone here at the channel resistance line around 61,8% - 78,6% Fibonacci retracement.
So, if we are on the right path and if Tesla starts sharply falling back below 700 region, then we should be really aware of much bigger sell-off within wave C that can push the price even down to 500-400 support zone.
Be humble and trade smart!
If you like what we do, then please like and share our idea!
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
Comment:
Tesla on the way down as expected. Watch out for more weakness in upcoming days.
Comment:
Nice drop on Tesla since April, still room for 500 if not 400...
Comment:
Now that Tesla is recovering without hitting new lows, seems like wave B is going to be longer and more complex. Either we will see a bearish triangle or flat formation within wave B before we will see that sell-off for wave C towards projected 500-400 support zone.
