TeslaLong
Tesla correction end or only a pullback?
After that Tesla recently made an impulse down since the 5th of April it has been indicating for a short term bottom or simply for the end of its' correction. This analysis is showing a short term bullish price action but the longer term is still unclear.
ABC scenario:
From the 4th of November 2021 until the 24th of Februari 2022 Tesla has been going down in, what I believe, a leading diagonal* as wave [A] of a zigzag**.
This was then followed by a 3 waves move (ABC) of [B] (also being a zigzag) ending the 5th of April 2022.
Lastly, an impulse as the wave [C] with a 5th wave extension ended the 12th of May 2022.
If this was indeed the wave [C] which didn't make it to become 100% of [A] but realized a new low, then we should now move to an all time high without making any new low under [C].
Impulse scenario:
Instead of having the leading diagonal as a wave [A], it could also be the first wave [1] of a bigger impulse.
This would mean that wave [C] would instead be the first wave (1) of [3].
If this scenario plays out instead, we will just have a short term bullish 3 waves sequence that would end around the 50 or 61.8% fib retracement of wave (1) of [3] (the red box) and then falling further down to new lows.
*A Leading Diagonal: is a 5 waves move that happens in either in wave 1 of an impulse or wave A of a zigzag. It's a the only bullish 5 waves sequence (with the ending diagonal) where the 4th wave of it breaks below the top of the 1st wave. Its' subwaves are usually 3 waves sequences.
** Zigzag: A 3 waves move where the first and the third leg are themselves 5 waves impulses separated with the middle leg which is a 3 waves correction.
ABC scenario:
From the 4th of November 2021 until the 24th of Februari 2022 Tesla has been going down in, what I believe, a leading diagonal* as wave [A] of a zigzag**.
This was then followed by a 3 waves move (ABC) of [B] (also being a zigzag) ending the 5th of April 2022.
Lastly, an impulse as the wave [C] with a 5th wave extension ended the 12th of May 2022.
If this was indeed the wave [C] which didn't make it to become 100% of [A] but realized a new low, then we should now move to an all time high without making any new low under [C].
Impulse scenario:
Instead of having the leading diagonal as a wave [A], it could also be the first wave [1] of a bigger impulse.
This would mean that wave [C] would instead be the first wave (1) of [3].
If this scenario plays out instead, we will just have a short term bullish 3 waves sequence that would end around the 50 or 61.8% fib retracement of wave (1) of [3] (the red box) and then falling further down to new lows.
*A Leading Diagonal: is a 5 waves move that happens in either in wave 1 of an impulse or wave A of a zigzag. It's a the only bullish 5 waves sequence (with the ending diagonal) where the 4th wave of it breaks below the top of the 1st wave. Its' subwaves are usually 3 waves sequences.
** Zigzag: A 3 waves move where the first and the third leg are themselves 5 waves impulses separated with the middle leg which is a 3 waves correction.
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