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
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.