Tesla seems to be moving sideways since October 4, after printing high around $806 level. The indice has already hit its Elliott Channel resistance just above $800 mark and could be soon preparing to turn lower. Please note that $820-25 is the resistance zone.
Tesla had earlier dropped from $900 highs through $539 lows, subdividing into five waves, which is labelled as primary Wave 1 on the chart here. The subsequent rally has been complex, but structurally it looks like a potential standard flat 3-3-5 structure.
Tesla might have terminated its corrective phase around $806 early this month or it is still looking to terminate around $820-25 zone. We have labelled potential Wave 2 termination around $806 on the chart and a break below $866 will confirm.
Also note that Tesla has tested its past support turned resistance around $806 and reached up to fibonacci 0.618 retracement of Wave 1 already. Having said that, potential remains for a test of $820-25 resistance zone before turning lower again.
Traders might want to position themselves on the short side around $800-20 zone, with risk above $900 and potential reward below $400 levels going forward.
Finacademy Technical Team
USDJPY could be progressing into a counter trend rally toward 114.30-50 zone in the next few trading sessions.
Gold dropped to $1770 mark on Tuesday before finding some support. The yellow metal is still testing its intermediate trend line support connecting $1721 and $1758 levels respectively.
The US dollar index carves a meaningful top around 96.88 mark over the last week. The index reversed sharply on Friday confirming a bearish Evening Star candlestick pattern on the daily chart.