Tesla On The Verge Of Confirming New Bull Run
Dr. Arnout ter Schure | Sep 09, 2022 01:04PM ET
Almost a month ago (see here), I provided an update on Tesla (NASDAQ:TSLA) using the Elliott Wave Principle (EWP). Since then, the EV maker has gone through a 3-for-1 stock split, so all the share prices have been updated accordingly. Back then, I wrote:
“[I am] tracking a potential impulse higher, which means TSLA should now have bottomed for (green) minor-4 of (red) intermediate-iii/c of (black) major-1, rally to around $330, correct to ~$290, and then rally again to ~$365 (green/red path, which is the ideal impulse path). If this path completes along those lines, it means TSLA will do one last Primary wave-V up to ideally $530+, as per the assessment in October [see here].”
Tesla’s stock price topped the day after my article came out at $315 and has since fallen back to $266 earlier this week, only to rally back to the current high 290s.
Thus, the objective EWP-based path I shared almost a month ago has filled in rather well, with only a few nuances: (green) W-5 topped ($315 vs. ~$330), and (red) W-iv has likely bottomed ($266 vs. ~$290), with (red) W-v of (black) W-1 now most likely underway.
See Figure 1 below:
Figure 1. TSLA daily chart with detailed EWP count and several technical indicators
If this week’s low holds, TSLA can complete the impulse higher and, as said in my previous update, “In that case, the next larger pullback will be an excellent low-risk buying opportunity.” That pullback will be a W-2 and after that come W-3, 4, and 5 with an ideal upside target of $350.
Conversely, TSLA will have to drop below $265 from current levels to tell me this option is off the table.
However, for now, the stock has followed the ideal EWP-based path, and I must continue to favor a bullish outlook until proven otherwise.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.