Almost a month ago (see here), I provided an update on Tesla (NASDAQ:TSLA) using the Elliott Wave Principle (EWP). Since then, the EV maker has gone through a 3-for-1 stock split, so all the share prices have been updated accordingly. Back then, I wrote:
“[I am] tracking a potential impulse higher, which means TSLA should now have bottomed for (green) minor-4 of (red) intermediate-iii/c of (black) major-1, rally to around $330, correct to ~$290, and then rally again to ~$365 (green/red path, which is the ideal impulse path). If this path completes along those lines, it means TSLA will do one last Primary wave-V up to ideally $530+, as per the assessment in October [see here].”
Tesla’s stock price topped the day after my article came out at $315 and has since fallen back to $266 earlier this week, only to rally back to the current high 290s.
Thus, the objective EWP-based path I shared almost a month ago has filled in rather well, with only a few nuances: (green) W-5 topped ($315 vs. ~$330), and (red) W-iv has likely bottomed ($266 vs. ~$290), with (red) W-v of (black) W-1 now most likely underway.
See Figure 1 below:
Figure 1. TSLA daily chart with detailed EWP count and several technical indicators
If this week’s low holds, TSLA can complete the impulse higher and, as said in my previous update, “In that case, the next larger pullback will be an excellent low-risk buying opportunity.” That pullback will be a W-2 and after that come W-3, 4, and 5 with an ideal upside target of $350.
Conversely, TSLA will have to drop below $265 from current levels to tell me this option is off the table.
However, for now, the stock has followed the ideal EWP-based path, and I must continue to favor a bullish outlook until proven otherwise.