Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Tesla Bears Need To Crack $547 To Target $425.

By Dr. Arnout ter Schure Stock MarketsJun 11, 2021 02:59PM ET
www.investing.com/analysis/tesla-bears-need-to-crack-547-to-target-425-200585625
Tesla Bears Need To Crack $547 To Target $425.
By Dr. Arnout ter Schure   |  Jun 11, 2021 02:59PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

It has been a month since I last provided an update on Tesla's (NASDAQ:TSLA) share price. Back then, it was trading at around $575. Now, it is trading at $610, a 6% gain in a month. That is not much to write home about, nor much that helps me constructively assess the next most likely move. Besides, while the NASDAQ Composite and the Nasdaq 100 are close to their all-time highs, albeit having been range-bound since February this year, Tesla is still down 33% from its January all-time high. Thus, it is underperforming these two major indexes, not to mention in comparison to the S&P 500 and Dow Jones Industrial Average, which have set fresh all-time highs almost daily. Thus, all Tesla has done so far is gyrate around its 200-day simple moving average (SMA) over the last month. See Figure 1 below.

If it can stay above the 200-day SMA, all things are good. But the fact it has been struggling and not seen a “one-touch-and-go” setup is a sign of concern.

Figure 1. TSLA daily candlestick charts with EWP Count and Technical Indicators

Tesla Daily Candlestick Charts With Elliot Wave Count
Tesla Daily Candlestick Charts With Elliot Wave Count

Besides, Tesla is below its declining 50-day SMA. And it is evident from Figure 1 that “good times are ahead” when it trades above its rising 50-day SMA, and “bad times are ahead” when it trades below it.

Moreover, since my last update, the EWP suggests the rally is corrective and should fail due to the somewhat overlapping price action since my last update. A daily close below the 200-day SMA and $550 horizontal support can then help usher in the preferred decline to the ideal target zone, as shown in Figure 1.

But the bulls need to crack $625 resistance and rally Tesla back above the 50-day SMA to suggest the alternate EWP count is operable, i.e., blue primary wave-IV completed with a shorter than usual c-wave. Thus, we have explicit “if/then” scenarios ready to deploy when triggered, and we are prepared for either direction the price decides to take.

Tesla Bears Need To Crack $547 To Target $425.
 

Related Articles

Tim Knight
Lemonade Sours By Tim Knight - Dec 03, 2021 2

Remember Lemonade Inc (NYSE:LMND)? The company that, at the start of this year, was worth more than IBM (NYSE:IBM)? Yeah, that Lemonade. The company none of us had heard of. Let’s...

Craig Erlam
Dip Buying Short Lived By Craig Erlam - Dec 03, 2021

Friday’s dip buying is not proving particularly lucrative for European investors as stocks have given back earlier gains to trade broadly flat on the day. Given the seesaw price...

Tesla Bears Need To Crack $547 To Target $425.

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (5)
David Jay
David Jay Jun 14, 2021 1:51PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Primary wave IV looks to now have a 5-3-3 subwave pattern as opposed to the 5-3-5 pattern you had in the last update. Is this a common corrective wave count?
Bellamy Fernades
Bellamy Fernades Jun 13, 2021 2:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
YES your right doctor
Candy Man
Candy Man Jun 12, 2021 7:58AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Thank you doctor for the update.
apostolos sideris
apostolos sideris Jun 12, 2021 5:26AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
thank you for your regular update ontesla sir.nice weekend.
Ron Love
Ron Love Jun 11, 2021 9:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
They did that already, the stock hit $538 and rebounded. And FYI this stock doesnt trade on technicals, its trades on FUD news pieces and Elon Musk Tweets.
Peter Tendai
Peter Tendai Jun 11, 2021 9:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Thanks doctor
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email