Tesla UpdateLast Friday, Tesla managed to make another slight high breaching the 0.854 slightly but has yet to breach the prior $362.80 high. This could be one of two things, and both of which we have already been tracking so none of this should come as a surprise.
The first possibility is within the white count. This b wave would just be deep and has either already topped or needs a VERY slightly higher high. Technically speaking, it could breach that prior high mentioned above and still be considered a b wave. Due to the preceding price action, I would not call it that, but nonetheless, that is possible. In this count, it sees price heading lower towards the next box either tomorrow or Tuesday at the latest. There just isn't much more room for any upside in the white count.
The second possibility, it in the form of an ED for the turquoise count. The reason why I say an ED, is due to the choppy overlapping price action. Standard impulsive waves do not carry so much chop as they are decisive moves. ED's are traders unsure if the trend is ending or not causing chop, and when it ends, it creates a swift reversal in the opposite direction. If this is the case, we would need some downward action overlapping wave 1 @ $324.65. After which, price would head back up and ideally tag the turquoise box. It would only be required to make a new high, however, and is not required to tag the ALT target box.
The chances of the turquoise count are definitely elevated due to that breach of the 0.854 @ $354.02 but is not a sure thing. As mentioned above this has primarily been overlapping choppy action reminiscent of a corrective pattern. For this reason, I still believe we're dealing with a b wave and not an ED. Unfortunately, we cannot know for sure without a little bit more price action. If we breach that $362 high, we know it is the turquoise count and to expect a swift reversal downward in the near future. If it is the white count, then price should begin to head down within the next two days and breach the prior $302.68 low in the near future.
In short, there is very little room to move upward with the current pattern. A long position at this juncture would not be wise. This week will be a short week due to the holiday, so keep that in mind when placing any trades.
