TSLA - Perfect 5 wave impulse complete, correction inbound?
Revision of my previous TSLA chart using elliot wave principles to tighten up the levels. As a TSLA bull it pains me to post this, but a perfect 5 wave impulse has played out.
See numbered black annotations in the chart
1. Wave 1
The height range of the first wave is $88. Wave 1 Fib Levels are overlayed for the next point.
2. The main impulse wave 3
This wave included the short squeeze from Q3 earnings and the anticipation of the Cybertruck announcement.
Elliot wave states wave 3 is equal to the 1.618 of Wave 1. Overlaying Wave 1 Fib Levels on wave 3, this brings us to the $354, where major resistance and support has been found in the past. This also brings us to pre-Cybertruck announcement levels.
3. Wave 5 - The top
The upper price reached around $410
Elliot wave states the height of wave 5 equals the height of wave 1. At $410, and drawing from the base of the impulse, this distance equals an $88 range. Which if you refer back to point 1, is the height of our first wave $88.
4. We are here
We are at $405, on the minute level you can see a possible head forming.
5. ABC retracement
If we draw out a basic ABC correction, this takes us to around a price of $294, which also intersects with the ascending trendline put in place by wave 1 and 2 bottoms in Jun and Aug 2019.
Sentiment
Right now TSLA is riding high, media articles are bullish, bears are being ridiculed. I can feel the FOMO and am tempted to buy, but I can't ignore how perfect this Elliot Wave impulse is. Are we about to turn the corner?
Constructive comments and corrections welcome.
See numbered black annotations in the chart
1. Wave 1
The height range of the first wave is $88. Wave 1 Fib Levels are overlayed for the next point.
2. The main impulse wave 3
This wave included the short squeeze from Q3 earnings and the anticipation of the Cybertruck announcement.
Elliot wave states wave 3 is equal to the 1.618 of Wave 1. Overlaying Wave 1 Fib Levels on wave 3, this brings us to the $354, where major resistance and support has been found in the past. This also brings us to pre-Cybertruck announcement levels.
3. Wave 5 - The top
The upper price reached around $410
Elliot wave states the height of wave 5 equals the height of wave 1. At $410, and drawing from the base of the impulse, this distance equals an $88 range. Which if you refer back to point 1, is the height of our first wave $88.
4. We are here
We are at $405, on the minute level you can see a possible head forming.
5. ABC retracement
If we draw out a basic ABC correction, this takes us to around a price of $294, which also intersects with the ascending trendline put in place by wave 1 and 2 bottoms in Jun and Aug 2019.
Sentiment
Right now TSLA is riding high, media articles are bullish, bears are being ridiculed. I can feel the FOMO and am tempted to buy, but I can't ignore how perfect this Elliot Wave impulse is. Are we about to turn the corner?
Constructive comments and corrections welcome.
Note
We closed the day at 419, $10 above the top in my chart but this graph is still in play. If we continue to go up in tomorrows session beyond $420 then this chart is invalid and will re-evaluate.Either way, longing here is extremely dangerous with low risk reward.
Note
We closed today at 425, with some interesting bearish action at open. Looking like a wave 5 extension, target around $440-445.If you are trading this 5 wave sequence you should already be out - take the meat of the move, don't try to nail tops and bottoms.
Trade closed: target reached
There she blows. $435 top is in, about $25 off my $410 mark. Don't get me wrong - I'm a TSLA fanboy and bull. But no matter how powerful the fundamentals are for a company, elliot wave and technical analysis is still more powerful :)Will release a new chart in the coming days. Follow along and let's find out where this bottoms out.
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.