August 26, 2021
Tesla had pushed through $1712 mark yesterday before closing in around $707.00. The tech stock has remained below its critical resistance around $729 for now, keeping the bearish structure intact. A drop below $650 from here will confirm that the trend has turned bearish.
Tesla has got potential to drop towards $400 and $300 mark, going forward. Looking at the wave counts from $900 highs, the stock has carved Wave 1 impulse around $540, followed by corrective Wave 2 rally towards $780 levels already.
Also note that Wave 2 had travelled up to fibonacci 0.618 retracement of Wave 1, a typical guideline of Wave Principle. If the above is correct, Tesla is headed lower towards $400 at least as Wave 3 unfolds. Furthermore, please note that Wave 3 might be unfolding as an extension as it has managed to carve intermediate waves (i) and (ii) around $540 and $729 levels.
Above structure is clearly depicting a bearish structure but prices need to stay below $729, going forward. Immediate bearish confirmation can be had once Tesla breaks below $640 initial support. Traders might prepare to remain short against $729.
The Profinacademy.com Team
Bitcoin carves potential bottom around $46000
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.
US dollar index is bearish against 97.00
The US dollar index spiked through 96.85 mark on Wednesday on the back of the Federal Reserve interest rate decision.
EURUSD remains bullish against 1.1186
EURUSD is finding support from its consolidation lower range around 1.1260-70 and could resume its rally from here soon.