Time for a retrace?
I have updated my count after the latest price action. Tesla has been on a role but some of those people will be wanting to take their profit soon.
I drew a fib line from the i-ii and the (1)-(2). Looking at the latter (in blue) we hit the 1.618 and had a small pull back, then extended out almost to the 2.618 of that advance. It is here that I feel fairly confident we should have a pull back of some kind. Looking at the MACD we have negative divergence on the 15min time frame and started descending on the 1H time frame. Further more, the last hour on the volume chart was a HUGE red bar. These are all pointing towards moving lower.
If my count is correct our wave ii almost hit the 0.618 fib line of its Wave 1 which is considered deep. However, it lasted less than 2 days and only half the time it took for wave i to complete so I'm counting it short. If this analysis is correct we should have a shallow/longer wave iv. After this the upward trend should continue for wave v. Since wave ii was a simple ABC zigzag wave iv will most likely be complex.
Let's not get too ahead of ourselves though. This extension upwards could still have some gas left in it. THIS IS WHY STOP LOSSES ARE SO IMPORTANT. If used appropriately you can ride the next retrace out but still be protected in case it tanks....again.
Bonam Fortunam,
--Tyler
I drew a fib line from the i-ii and the (1)-(2). Looking at the latter (in blue) we hit the 1.618 and had a small pull back, then extended out almost to the 2.618 of that advance. It is here that I feel fairly confident we should have a pull back of some kind. Looking at the MACD we have negative divergence on the 15min time frame and started descending on the 1H time frame. Further more, the last hour on the volume chart was a HUGE red bar. These are all pointing towards moving lower.
If my count is correct our wave ii almost hit the 0.618 fib line of its Wave 1 which is considered deep. However, it lasted less than 2 days and only half the time it took for wave i to complete so I'm counting it short. If this analysis is correct we should have a shallow/longer wave iv. After this the upward trend should continue for wave v. Since wave ii was a simple ABC zigzag wave iv will most likely be complex.
Let's not get too ahead of ourselves though. This extension upwards could still have some gas left in it. THIS IS WHY STOP LOSSES ARE SO IMPORTANT. If used appropriately you can ride the next retrace out but still be protected in case it tanks....again.
Bonam Fortunam,
--Tyler
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Bonam Fortunam,
--Tyler
Bonam Fortunam,
--Tyler
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