TESLA - Time to recharge batteries? Looking at Tesla from an Elliot Wave perspective shows a very bullish uptrend since inception of the stock itself. Corrections & Bear Markets are there to beat you down and make you want to give up, and once in a while we are do for a big one. Looking at the chart I see a completion of Macro wave III which started in June of 2019. This was a huge move for Tesla gaining approx. 3,350%. Yes you heard that right, so when we see a large pull back, we shouldn't question it.
The current correction can have many complex variations in Elliot Wave Theory, so far I see an ABC down complete, a correction up for wave (X), and now working on (Y) which should be in 3 waves as another ABC that could bring the price down to $138 as a 1:1 extension of wave A from top of wave (X). If it decides to go even deeper, suppose we have a drastic recession in the world markets including U.S., then the price is allowed to go as low as $28 or a 1.618 fibonacci retracement from wave B of (Y).
In a slightly more bullish view, suppose the elections get markets to have a bear market rally and prices start going up, then we have a possibility that we are still not done with wave B of (Y) show in red colored ABC. However, I see this rally too is likely to fail if it happens; in the end gravity will win brining Tesla down somewhere in the support box (area outlined). Here, a longterm probable bottom as well as a reversal to the upside is likely.
Cheers,
