Tesla terminates Wave (ii) at $725/26 mark. Lower from here?

Written by Finacademy.io

August 3, 2021

Technical Analysis:

Tesla remained sideways for several trading sessions and has now rallied to $725 mark. The wave counts are adjusted here according to price action as wave c might have terminated around $725 levels. Please note that wave c sub divided into 5 waves where lower degree wave iv was a triangle.

If the above lower degree counts hold well, Tesla might resume lower from current levels ($710) and a break below $630 will confirm that a meaningful top is in place at $725 levels respectively. The next big move is expected to be lower towards $400 and $300 respectively.

Tesla has rallied through fibonacci 0.786 retracement of the recent drop between $780 and $540 levels. It is also the convergence point of fibonacci 0.618 retracement of the entire drop from $900 levels respectively. A bearish reversal from here remains high probability.

Looking at the wave structure since $900 highs, Tesla might have carved Waves 1 and 2 around $539 and $780 respectively. Furthermore, the tech stock seems to have terminated lower degree waves (i) and (ii) around $540 and $725 mark as well.

If the above is correct, Tesla bears might be back in control from here and drag prices lower towards $400 and $300 levels respectively.

Prepared by

Finacademy Technical Team

Related Articles

US dollar index is bearish against 97.00

US dollar index is bearish against 97.00

The US dollar index might have carved a lower high around 96.50 mark on Tuesday. The index dropped through 95.80 levels on Wednesday before finding some support.

English