TSLA Not Looking Too GoodTSLA has been subject to some extreme volatility recently with shareholders hoping for good news and optimism as Elon Musk partners with Donald Trump.
At the moment, I understand that Tesla earnings can be a potential positive catalyst for the stock if good news is reported, however shareholders may be in for a larger surprise as the price action may be suggesting a potential ABC or larger WXY corrective structure is currently at play.
For this structure, I would like to see the overall 1-1 extension of the trend based fibonacci. To me, it looks as though this structure is made up of many smaller corrective patterns, which are creating a very choppy and volatile environment.
While many stocks have retraced to their "Trump pump" gap levels, Tesla is still quite a ways away, being potentially overvalued.
I will personally be looking for the 0.618 retracement on Tesla just above $440-$450 for a short trade back down to the low of $330 where the latest fomo rally began up to nearly $500.
From there, I would be very much open to taking a long trade or a longer term investment on Tesla.
Only time will tell!