Elliot Wave Chart Analysis for Tesla, Inc. (TSLA)This chart presents an Elliott Wave analysis of Tesla, Inc.'s weekly stock price, highlighting key wave patterns and potential scenarios:
Wave Structure:
The chart indicates two primary corrective phases labeled W and Y.
The first corrective phase (W) shows an ABC correction, marked with internal wave structures.
The second corrective phase (Y) also presents an ABC pattern with further internal structures.
An X wave connects the W and Y corrective phases, suggesting a complex correction pattern.
Corrective Patterns:
Within both corrective phases (W and Y), the chart uses Elliott Wave labels (A, B, C) to detail the internal structure of the corrections.
Wave (B) in phase (Y) appears to have completed a sharp upward move, potentially indicating the end of the corrective wave.
Trend Lines and Key Levels:
A red diagonal trend line connects significant peaks, indicating potential resistance.
The price level of 299.29 USD is labeled "INVALID ABOVE," suggesting that a move above this level would invalidate the current bearish outlook.
The price is currently at 263.26 USD, marking a crucial decision point.
Current Price Action:
The chart shows the price approaching the critical 299.29 USD level, testing the upper boundary of the potential corrective wave.
Trading Ideas:
Bearish Scenario: Fake Out and Five Waves Down
If the price is rejected at or below the 299.29 USD level, it could confirm a fake-out scenario.
This would likely lead to a five-wave down structure, targeting lower support levels and indicating a significant decline.
Traders might consider short positions below 263.26 USD, with stop-loss orders above 299.29 USD to manage risk.
Bullish Scenario: Running Flat Completion
If the price breaks and sustains above the 299.29 USD level, it could suggest the completion of a running flat correction.
This scenario would favor a bullish continuation, potentially leading to new highs as the price moves out of the corrective phase.
Traders might look for long positions above 299.29 USD, targeting higher resistance levels for potential gains.
Conclusion:
Monitor the 299.29 USD level closely, as it is critical for determining the next major move.
A break above this level favors a bullish scenario, while a rejection could lead to a bearish continuation.
