Tesla rose over $16 today for what was an expected retrace. The problem with timing B waves is they can be unpredictable, which is why I tend to stay away from them. But if you manage to enter at the right place, they can be a lucrative quick trade. This structure that barely touched my box technically has 3-waves so it can be considered done, or this move up could be a minor a wave for the larger B wave of (2). Due to the timeframe, I believe the latter is more likely.
If that is the case, then tomorrow I would expect us to drop around $5-$10. Then we would see another rise for C wave into the box I have marked Wednesday or Thursday. If this extends out tomorrow, and digs deeper into my target box, then I would consider my other count to have prevailed. That would mean that the B wave would be very quick, so the C wave could be strong and quick as well.
The other possibility is marked in turquoise. This suggests we have already bottomed in (2) and are about to take off to the upside. I find this scenario at this time unlikely. Sure, it's not impossible, but to me structure looks as though we haven't even finished B of (2).
If we drop the $5-10ish I am thinking, then I will most likely enter into a very small position to try and capture $15+/share profit for the end of B. If price rises, I will remain on the sidelines until we finish (2). In the off chance we started 3 I will wait for a good entry. Either way, as always, I will post any and all trades I make regarding Tesla on here. If I were to enter a trade, know I would be using tight stops, and I will only enter if price is doing as I predicted.
Bonam Fortunam,
--Tyler