Tesla Elliott Wave analysis: Bulls attempt to regain control [Video]

Gregor Horvat Wavetraders

Tesla sold off aggressively in July following a disappointing earnings report, breaking below the 335 support and extending the deeper correction from the December highs. However, we still think this decline can be counted as wave C within a larger corrective structure.

Price is now reversing from the lower boundary of the declining channel, while the earnings gap has been filled and the bullish level was also tested. This opens the door for bulls to take control with wave 1 of a new five-wave bullish cycle. After the most recent wave 2 pullback, we could now see continuation higher within wave 3, especially if price breaks above the channel resistance and moves towards the 400 area.

Highlights

Bullish reversal from a key support level.
A recovery above 369 would confirm a more bullish outlook.
A breakout above the channel resistance and 400 level would put wave 3 in play.

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Author

Gregor Horvat

Wavetraders

Experience Grega is based in Slovenia and has been in the Forex market since 2003.

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