Tesla might have terminated Wave 2 correction around $780 levels around mid-April 2021 and since then Wave 3 has been unfolding lower. High probability remains for Wave 3 to terminate around $400 and $300 levels going forward.
Looking at the wave structure and counts for Tesla since $900 highs, the tech stock has carves Waves 1 and 2 around 4539 and $780 levels respectively. If the above is correct, bears might be looking poised to terminate Wave 3 lower towards at least $400 levels, if not further.
Also note that Wave 2 (a-b-c) rally had managed to reach up to the fibonacci 0.618 retracement of Wave 1 as marked on the 4H chart here; a common fibonacci wave relationship. Ideally, prises should stay below $780 levels going forward.
Furthermore, Wave 3 seems to be unfolding as an extension with lower degree waves being carved out around $540 and $700 levels respectively. If the above holds well, we are just about to witness a iii of 3rd wave lower towards $400 levels in the next few weeks.
Traders might want to position themselves on the short side from here ($650/60), with potential risk above $780 mark and target towards $400 and $300 going forward. A push above $780 eliminates bearish outlook over the medium term outlook.
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.