Tesla’s Run To $600 Is Underway

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In my article from three days ago, I concluded from my objective Elliott Wave Principle (EWP) and technical analysis that:

if (NASDAQ:TSLA) can hold at least $428, and from an EWP-perspective $380 ultimately, it has completed a larger 4th wave as a (tricky) triangle and can (then) move higher to ideally $535-550, possibly as high as the low $600s to complete wave-5 of larger wave-III/C.”

It bottomed at $433 that day and is now already more than 12% higher since I wrote my article. Had one followed my advice, “Tesla is moving higher to certain mathematically calculated -levels (target) and to get there it should not break below certain price levels (stop). That is the actionable take-away, and all we really need to know,” one would have made a pretty penny very quickly and easily. Isn’t that what this is all about? On my private twitter trading feed we are nicely from my work as this is as easy as trading can get.

So, what is next?

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The daily chart below shows price has already reached the 1.618x Fib-extension yesterday at $509; a typical 3rd wave extension target, and should now correct for a smaller (red) wave-iv to ideally $480-465 before moving higher to at least–and ideally–$535+. It has the possibility to move to $600+ as well if red wave-v decides to extend. We will deal with that when we get there. For now, the focus is on this red wave-iv.

Figure 1: TSLA daily candle stick chart with detailed Count

Tesla Daily Candlestick Chart With Detailed EW Count.

Bottom line: Tesla is moving along as expected and should now be in a short-term correction to alleviate some of the overbought conditions before moving higher to at least $535. Tuesday’s technical breakout, indicator-based buy signals, and EWP count all supported higher , as Tesla never moved below $428. If anything, Tuesday was a buying opportunity. For now, Tesla is following along classic EWP-patterns and Fibonacci-levels. Therefore, I see no reason to change my bullish point of view, which has, in fact, only been bolstered by the recent price action, unless it closes below $452 (labelled as the red wave-i high made Nov. 9), from current levels. Thus, if anything, the current pullback represents another buying opportunity for those may have missed the boat. And a clear well-defined stop level of $452 can be used.

Source: Investing.com

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