TESLA: Can the minor uptrend win?
Updated
Channel
- A minor uptrend exists within a main downtrend. For TESLA to officially transition into an uptrend, it must break the main downtrend and surpass the significant prior high at $313.5.
Symmetrical projection: An uptrend N pattern
- By projecting a 100% symmetry projection of the initial swing from point A to B, and extending it from point C.
- As the expected symmetric pullback to E from D did not occur, I anticipate a further 100% extension of the primary bullish momentum (A to B) from D to F ($384.6). The target price level aligns perfectly with the starting point of the primary downtrend, further enhancing the significance of the target price.
Resistance level on the way
- The significant prior high at $313.5 represents a critical resistance level as the market must break through it to officially reverse the downtrend.
Support/ Defence levels for bulls
- The prior low at $241 is a key support level that shouldn’t be broken, if the market intends to sustain the uptrend. The level aligns with two critical Fibonacci levels, adding its importance.
- The 0.5 Fibonacci retracement level of the primary downtrend from point X to point A.
- The 0.618 Fibonacci retracement level from point C to point F (assuming the target price of $384.6 marks the end of the uptrend).
- If the price manages to sustain above the current level at $268, it would create the ideal scenario for a healthy uptrend. This is because $268 serves as both the original target price at level D and the 0.786 Fibonacci retracement level of the nearest downswing from point X to point A.
**Not Financial Advice**
The information contained in this article is not intended as, and should not be understood as financial advice. You should take independent financial advice from a professional who is aware of the facts and circumstances of your individual situation.
Note
The key level at $268 seems held, indicating a potential for the uptrend to sustain. Once the price closes above the high at $284, we can officially adjust the prior low level to $268.
However, there are two resistances ahead:
- The pressure from the main downtrend.
- The pressure from the upper band of the minor uptrend.
If the market aims to continue the uptrend, it would be nice to see a large bullish candle with high volume that breaks through these two resistances.
Otherwise, the price might oscillate between the downtrend line and the $268 level.
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