Tesla Update: to b or not to b

I want to start by stating there was a lot of fibs I had to hide just so I could make this chart readable. To state there is MAJOR fib confluence in the $220's is an understatement. The main A-B pattern, you know the one we have been tracking since the $299.29 high, it's 0.618 fib is @ $225.67. This is a VERY strong fib line to say the least and any move above it will most likely be minimal and swift. Not to mention the two 1.0 fibs I have on there. That being said, I don't expect us to breach $228.21 at the 0.5 fib retracement or we are most likely dealing with something other than a wave iv. This isn't a rule but a strong guideline. Technically speaking we can rise all the way to $247.53 without invalidating this count as that would create overlap between waves ii & iv.

The MACD on the 3min timeframe, as of this writing, is on pos div. This doesn't mean it can't change with a further drop in price tomorrow. The 5 min looks poised to rise as well and the 15min is beginning to curl. These signify a move up of some proportion is coming. Price could make one more slight/quick low, adding to the pos div, and giving what I am calling micro c wave a little extra strength for the move up. I have a turquoise label showing we could make that OML I stated was very possible.

I also want to point out, when this whole move started up for this micro a wave, I called $207-$209 for the micro b wave. Tesla tried to shake us off her trail, but I believe she failed. If I am correct, we should start our trek up tomorrow for our micro c wave and finish out this wave iv of (3) of C either Thursday or Friday. There is always the chance wave v has started already, but with the choppiness/overlapping of this price action screams corrective.

Should price behave as I have said here, I will plan on buying some puts when it nears its top. If I get a wild hair, and Tesla has a clear and cut count, I may buy a couple calls for this micro c wave up. This is doubtful though as I just feel these types of trades are risky and generally for scraps. I would rather position myself better for the move down that has more meat. Of course, if I make any trades I will post them on here.

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Bonam Fortunam,
--Tyler

Commentaire:

2 calls bought strike $230 exp 11/3

Commentaire:

This chop is exactly why this trade is risky. Also the reason I only bought 2 contracts. If I lose 100% on these calls, sure it would suck, but not the end of the world. That's why I made a small pos

Transaction en cours:

Added 1 call

Commentaire:

New low made on macd 3min chart. Know your risk tolerance and act accordingly

Commentaire:

The only impulsive structure to the downside I see is a potential ending diagnol for v. If this is the case we will make a marginal low followed by a steep climb for wave (4). This move usually terminates where it began, which would be in the low $220's. If we DO NOT make a low below $202.51 then my primary still stands