Diamond Reversal Forming On Tesla ($TSLA)
Updated
This pattern on TSLA fits the outline for a diamond reversal that is referenced on Investopedia.
It has all the "classical" facets of a diamond reversal which is a high (A), a low (C) a higher-high.
Furthermore, this is happening alongside a very similar pattern on NFLX and some bearish patterns on many other stocks.
Similar forms also occurred on SPX in 2021-2222 and Bitcoin in 2021.
The move up from the 2023 lows has the form of an ABC up... which suggests another 5 wave downmove on-par with or even exceeding the previous downmove is on the way.
The move off the highs was a whole 75% so even presuming a moderate 1:1 ratio, the next wave down could be very aggressive which means that an excellent short could be lining up.
Trade safe and be careful out there.
It has all the "classical" facets of a diamond reversal which is a high (A), a low (C) a higher-high.
Furthermore, this is happening alongside a very similar pattern on NFLX and some bearish patterns on many other stocks.
Similar forms also occurred on SPX in 2021-2222 and Bitcoin in 2021.
The move up from the 2023 lows has the form of an ABC up... which suggests another 5 wave downmove on-par with or even exceeding the previous downmove is on the way.
The move off the highs was a whole 75% so even presuming a moderate 1:1 ratio, the next wave down could be very aggressive which means that an excellent short could be lining up.
Trade safe and be careful out there.
Note
CorrectionLine 2 should say: It has all the "classical" facets of a diamond reversal which is a high (A), a low (C) a higher-high (B) and a zig-zag move along axis (D).
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