Tesla’s Dead-Cat Bounce To $800 Still On Track
Dr. Arnout ter Schure | Mar 19, 2021 03:18PM ET
A week and a half after I last provided an update on Tesla (NASDAQ:TSLA), I was looking for:
“… a larger multi-day bounce to ideally $825+/-25 before the next leg lower kicks in. … The three waves are currently in progress, and the first wave has likely been completed (red wave-a). The second wave is now underway (red wave-b) to ideally $625+/-25, from where the next move higher (red wave-c) should kick into ideally $825+/-25 for a typical wave-C=wave-A relationship. That targets around the 76.40% retrace of the last decline as well as into the Horizontal Resistance zone.”
Fast forward, and the stock topped indeed for red wave-a the day I wrote my update. Today, its price has reached the red wave-b target zone of $625+/-25 as it bottomed today – so far – at $624.62. Can it get any more accurate? The Elliott Wave Principle (EWP) is almost all I need to reliably, accurately but not perfectly, forecast how assets will move from the smaller to the larger timeframes.
Figure 1. TSLA daily candlestick chart with EWP Count and Technical Indicators:
Thus, as long as $600 holds, which is the lower end of the red wave-b target zone, and ideally today’s low hold, I expect the next move higher towards $800-825 to get going soon, targeting $815 ideally. Once this red intermediate wave-c of black major-b completes, I expect the next leg lower: wave-c of blue Primary-IV to ideally $450+/-25.
Bottom line: The detailed EWP count shown in the previous update appears to be unfolding as anticipated. I now prefer to look higher for Tesla and for the price to reach $815 ideally. From there, I expect the next decline to ideally $450+/-25.
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.