July 29, 2021
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
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