Tesla’s 10 fold rise since March 2020 lows at 70.00

Technical Analysis:

Tesla has produced a religious uptrend since hitting lows in March 2020 around 70.00 levels. The stock has risen more than 10 fold since then, registering highs around 900 mark in January 2021. We bring the daily chart analysis today and what could be the next probable move.
Tesla has managed to rally from 70 through 900 levels since March 2020 lows, clearly, subdividing into 5 waves as labeled here. The stock might have completed a larger degree Wave (3) around 900 before pulling back towards 540 levels on March 05, 2021.
If the above wave count holds well, the drop between 900 and 540 could be seen as a correction, which found support around Fibonacci 0.382 retracement of the entire rally between 70 and 900 levels respectively. In that case, Tesla may witness another high above 900 before terminating.
Alternately, the drop between 900 and 540 could be seen as Wave A of a much deeper correction as labeled on the chart view here. If correct, Tesla is unfolding into potential Wave B now and finds resistance around 795 levels.
The stock might reverse lower from there and drop towards 390 levels, which is also Wave 4 termination of one lesser degree. Furthermore, 390 is also passing close to the Fibonacci 0.618 retracement of the entire rally between 70 and 900 respectively.
Since the one-year support trend line has been broken, it would be good to remain a bit cautious at the moment. A push above 830 levels will confirm that Tesla is back in control of bulls and is poised to push through 900 resistance though.

Prepared by

Finacademy Technical Team