September 2, 2021
Tesla bulls had pushed prices higher towards $741 on Wednesday before pulling back lower towards $734 mark at market close. The tech stock has been pushing higher since $540 levels, but holds below the critical resistance around $780. A break below &700 initial support is now required to confirm that bears are back in control.
Tesla larger degree wave structure since $900 mark is indicating a potential Wave 1 and 2 in place around $539 and $780 levels respectively. The drop between $900 and $539 can be subdivided into 5 wave, marking an impulse, labelled as Wave 1 on the chart.
The subsequent rally has been corrective a-b-c, terminating around $780 level, labelled as Wave 2. Since then, Tesla has been producing a series of lower degree waves I and ii as follows. The drop between $780 and $539 could be lower degree wave (i), while the subsequent rally towards $740 could be marked as wave (ii).
If the above proposed wave structure is correct, Tesla should be poised to drop sharply lower as wave (iii) of 3 progresses. The minimum projected target for Wave 3 to terminate is toward $400 mark, with probability towards $300 going further.
The Profinacademy.com Team
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