TSLA, BEST and WORST Case Scenarios ! Both are possible for now!
We are at the moment which both optimistic and pessimistic scenarios are possible for TSLA in terms of Elliott waves. Lets follow and investigate BEST and WORST case scenarios :
BEST CASE SCENARIO :
Lest start with the best one. This scenario, if happens, can present considerable profit to bulls. In this case , Ascending rally from 546.98 up to ATH and correction from ATH down to 700 can be considered as wave 1and 2 of a new up going wave cycle. As shown on the chart , mentioned decline corrected around 78 % of the previous rally which is usual and acceptable for a wave 2. In this scenario, we are currently in the correction of 5 leg up from 700 to latest high and most profitable wave is yet to come after end of correction at proposed prices on the chart corresponding to 0.5 , 0.618 and 0.786 retracements of latest rally.
WORST CASE SCENARIO :
Lets think what is probable if we label correction from ATH down to 700 wave 4 ? Is it possible ? unfortunately yes. Is it usual ? No, but it happens and cannot be ignored. Some who know Elliott waves may argue that wave 4 cannot be entered into the territory of wave 2. Of course they are right in terms of Classic Elliott but this happens in Elliott Harmonic and many examples can be found.
Above 50 % correction for wave 4 sends a warning to smart traders that there may be a truncated wave 5. Truncated wave fives or those last waves in ascending trend which cannot make a new ATH. As we see all the conditions for this scenario is present.
Who can predict the TSLA's behavior now? As my experience says, It is very difficult for now as both scenarios are valid based on Elliott wave rules and guidelines so taking every position should be done by cautious. Please do not forgot to set a stop loss if you open a position in this volatile market.
My suggestions:
1. For those who are watching TSLA and want to take a long position : Watch for proposed prices on the chart and wait for a strong bullish signal there. Set your stop loss and try your chance.
2. For those who are watching TSLA and want to take a short position: Wait for a minor counter trend correction, Watch it's reaction to shown down trend line, open short position in case of rejection from resistance but do not forgot to set a stop loss ! Bullish scenario is also possible.
3. For those who currently have TSLA shares. It can be good to manage risk and close at least part of position after up coming minor counter trend correction.
Good luck everyone.
BEST CASE SCENARIO :
Lest start with the best one. This scenario, if happens, can present considerable profit to bulls. In this case , Ascending rally from 546.98 up to ATH and correction from ATH down to 700 can be considered as wave 1and 2 of a new up going wave cycle. As shown on the chart , mentioned decline corrected around 78 % of the previous rally which is usual and acceptable for a wave 2. In this scenario, we are currently in the correction of 5 leg up from 700 to latest high and most profitable wave is yet to come after end of correction at proposed prices on the chart corresponding to 0.5 , 0.618 and 0.786 retracements of latest rally.
WORST CASE SCENARIO :
Lets think what is probable if we label correction from ATH down to 700 wave 4 ? Is it possible ? unfortunately yes. Is it usual ? No, but it happens and cannot be ignored. Some who know Elliott waves may argue that wave 4 cannot be entered into the territory of wave 2. Of course they are right in terms of Classic Elliott but this happens in Elliott Harmonic and many examples can be found.
Above 50 % correction for wave 4 sends a warning to smart traders that there may be a truncated wave 5. Truncated wave fives or those last waves in ascending trend which cannot make a new ATH. As we see all the conditions for this scenario is present.
Who can predict the TSLA's behavior now? As my experience says, It is very difficult for now as both scenarios are valid based on Elliott wave rules and guidelines so taking every position should be done by cautious. Please do not forgot to set a stop loss if you open a position in this volatile market.
My suggestions:
1. For those who are watching TSLA and want to take a long position : Watch for proposed prices on the chart and wait for a strong bullish signal there. Set your stop loss and try your chance.
2. For those who are watching TSLA and want to take a short position: Wait for a minor counter trend correction, Watch it's reaction to shown down trend line, open short position in case of rejection from resistance but do not forgot to set a stop loss ! Bullish scenario is also possible.
3. For those who currently have TSLA shares. It can be good to manage risk and close at least part of position after up coming minor counter trend correction.
Good luck everyone.
