Where Does TSLA Land?
Updated
Trend
- Downtrend confirmed.
- Components of the channel chart:
- The original downtrend channel plus a 100% extended channel.
- Both channels divided in half by blue dotted lines.
- The shaded zones furthest from the center represent "overbought/oversold forces," which counterbalance each other.
- Currently, the price is descending into the extended channel, suggesting a chance of reaching the lower band of the extended channel.
- Note that when the price enters the orange shaded zone, it could move rapidly in one direction, as there is minimal previous support and resistance.
- The trend lines serve as potential support and resistance levels.
100% Symmetrical Projection: Downtrend “N” Patterns
- A 100% Symmetrical Projection of the previous swing (from A to B) and then projected from C. As a result, D is the initial target price on the short side.
- The 0.5 level from C to D serves as a clear support, enhancing the value of this projection.
N Pattern’s Target Price & Fibonacci Price Cluster
- The target price of $116 at level D aligns with a major prior low on the weekly chart.
- Levels 1 & 2 are significant due to the price cluster effect, demonstrating the validity of the extension of the prior major swing.
- Consequently, Level 3 has a good chance of becoming a critical support and a potential target price.
Conclusion
- In comparison with symmetrical analysis, TSLA's trend channel chart provides higher reference value.
- The dynamic target price is the lower band of the extended channel.
- The fixed target price (strong support) could be $122, followed by $116.
Not Financial Advice
The information contained in this article is not intended as, and should not be understood as financial advice. You should take independent financial advice from a professional who is aware of the facts and circumstances of your individual situation.
Note
- I've noticed another symmetrical N pattern that might be interesting to share, even though the measurements aren't typical for me.
- Remember the gray shaded zones furthest from the center representing overbought/oversold forces? As we want to analyze the true forces, not the extra ones, we don't include those forces when crafting the symmetrical N. Consequently, the starting point of the N will be the 3rd candlestick from the high. By doing this, level C is almost the 0.382 Fibonacci retracement from A to B, and the target price at level D is very close to the 1.618 Fibonacci Projection from A to B.
- Concern: The forecasted price action in the orange channel somewhat contradicts level D as a significant target price/support. In the orange channel, the price could move rapidly due to minimal previous support and resistance. Unless the price drops to level D in one go, hitting the bottom of the orange channel at the same time...?
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