Tesla : Looking for a final rally higher
The last count was very bullish and was looking for a wave 3. This did not happen and the count was invalidated. The first adjustment in counting is that price wasn't finished with wave 2(circle) yet. In this count i am still looking for a wave 3(circle) up. Perhaps Biden will launch this rocket.
However, looking at how price has been in a contracting range for the last couple of days, a triangle should be considered. This would mean price is still in wave IV and the final wave V could be a spike through the wave III high at minimum. There is one problem with counting this price action as a triangle. wave 1(circle) has to be changed from an impulsive wave to a corrective wave B of a triangle. This is not a good way of changing a count but can be allowed if the internal structure of that wave is not clear and the timeframe is small enough. Look for wave D to finish between the 2 red lines shown on the chart. Wave D cannot go past the wave B high but should go above the trendline that started at the wave B high.
If the wave IV wave low is broken, a double three corrective wave is still possible, but the size of wave IV would be large enough to consider that Tesla has already topped and is in a larger corrective wave down.
Good luck !
However, looking at how price has been in a contracting range for the last couple of days, a triangle should be considered. This would mean price is still in wave IV and the final wave V could be a spike through the wave III high at minimum. There is one problem with counting this price action as a triangle. wave 1(circle) has to be changed from an impulsive wave to a corrective wave B of a triangle. This is not a good way of changing a count but can be allowed if the internal structure of that wave is not clear and the timeframe is small enough. Look for wave D to finish between the 2 red lines shown on the chart. Wave D cannot go past the wave B high but should go above the trendline that started at the wave B high.
If the wave IV wave low is broken, a double three corrective wave is still possible, but the size of wave IV would be large enough to consider that Tesla has already topped and is in a larger corrective wave down.
Good luck !
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