Tesla is still carving Wave 2 toward $780

Written by Financial Educator

September 16, 2021

Tesla could be unfolding its primary Wave 2 as a flat structure and terminate close to $780 mark, before turning lower. Bottom line for bears to remain in control is $900 resistance going forward. If the above holds well, the stock could drift towards $400 levels.

Tesla had peaked around $900 mark in January 2021 before reversing lower. The drop between $900 and $539 can be subdivided into 5 waves marked as waves I through v on the chart above. It also terminated primary Wave 1 indicating the larger trend to be down.

The subsequent price action suggests a potential 3-3-5 structure unfolding. The rally between $539 and $780 was in three waves marked as lower degree wave ‘a’ on the chart; followed by wave ‘b’ lower towards $540.

Tesla is unfolding wave ‘c’ at the time of writing and could re-test $780 levels before terminating. If the above unfolds accordingly, primary Wave 2 would be a standard flat (3-3-5) structure. The tech stock is expected to turn lower thereafter towards primary Wave 3.

Traders might position themselves on the short side around current price levels ($760-770), against $900 mark, with potential targets below $400.

Prepared by

The Profinacademy.com Team

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