Tesla has been drifting sideways between $627 and $700 levels since few trading sessions with dropping resistance and constant support. A potential barrier triangle might have unfolded as the stock prepares to break below $620 levels.
If Tesla bears are successful in breaking below $630/25 levels soon, prices might accelerate sharply lower towards $530 and lower in the near term. Also note that it would confirm a trend reversal towards $400 and $300 levels over the next several weeks.
Looking at the wave counts in Tesla since $900 highs, the tech stock has managed to unfold Waves 1 and 2 already around $540 and $780 levels respectively. If the above is correct, Wave 3 has already resumed lower since $780 highs and would drag prices below $539 eventually.
Furthermore, Wave 3 seem to be extending with sub waves (i) and (ii) also in place around $540 and $700 levels respectively. If the above structure unfolds accordingly, (iii) of 3rd wave might be in progress since $700 levels.
Traders might be willing to hold on the short positions for now, with potential targets below $400 and $300 as the steepest wave unfolds.
The Profinacademy.com Team
Bitcoin dropped close to $46000 mark on Monday before finding support again. The crypto is seen to be trading around $46500 mark at the time of writing as bulls remain inclined to be back in control.
The US dollar index spiked through 96.85 mark on Wednesday on the back of the Federal Reserve interest rate decision.
EURUSD is finding support from its consolidation lower range around 1.1260-70 and could resume its rally from here soon.