Tesla has been drifting sideways after having print $806 high on October 4. The tech stock should ideally stay below $806 and turn lower from here. A drop below $758 would be encouraging for bears to drag further as they take control back.
Tesla wave structure is a classic text book example of the Elliott Wave Principle. The pattern has unfolded as a five wave drop followed by a three wave corrective rally. The drop from $900 high through $539 was clearly subdivided into five waves, marked as Wave 1.
The subsequent rally from $539 lows through $806 high early this week can be subdivided into a 3-3-5 patter, which is classified as a standard flat. The corrective a-b-c pattern looks to be complete at $806 mark, which is close to fibonacci 0.786 retracement of Wave 1.
Furthermore, the Elliott Channel resistance has also been hit around $806 zone, which could trigger a sell off soon. Having said that, probabilities remain for another push toward $820 mark before finding meaningful resistance.
Either way, traders might want to remain short against $900 mark, with a potential trend reversal towards $400 mark, going forward.
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.