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Elliot Wave Analysis for TESLA
Tesla is an automotive company based in Texas, which is focused especially on clean energy. It manufactures electric cars, battery energy storage systems, and solar panels, through its subsidiaries. Tesla was founded in 2003, and Elon Musk became CEO of the company between the years 2004 – 2008, being the largest shareholder. The sales in 2021 exceeded every possible scenario, having a market capitalization that reached $1 trillion.
Monthly Range: Correcting in wave ((4))
Looking at the monthly trading chart (log scale), we do not have any overlapping, so is extremely easy to put our labeling on the diagram. As you can see, we are within an impulse, and more specifically, we are done with the strong ((3)) Primary wave, and we are expecting the retracement of the ((4)) Primary wave.
Until now, the Fibonacci extension of wave ((3)), has exceeded the 1:1: ratio, about the ((1)), which is acceptable, since the third waves must not be the shortest ones in absolute prices. Just to mention, the 1.236 extension level would be at $1460,47. Thus, imagine that the 1.618 extension level will be much higher than that if the ((3)) hasn’t finished yet. The ((2)) Primary wave has done a narrow sideways correction of a flat.
Also, regarding the Fibonacci retracement levels, as shown in the chart, so far, the stock hasn’t touched the .236 line, which is at $521,01. Just to say that the extreme line of the .786 retracement level for fourth waves, is at $75,91. Even if this case is possible, at those prices, we won’t again get to the territory of ((1)) Primary wave, at $58,28, as the rules say. Therefore, we shall still be within an impulse wave of a Cycle degree.
Daily Range: Completing wave 5 of (A) of ((4))
Looking closer at the daily chart (log scale), like the title says, it seems that we are at the last fifth
wave of this expanding diagonal, labeled as the (A) Intermediate of ((4)) Primary wave. We are positively sure about this diagonal, because the market has subdivided into 3s, and on the other hand, the corrective Minor degree waves 2 and 4, have been evolved more than 80% of their previous waves (1 and 3), and we observe the overlapping of 4 into the territory of 1. Lastly, the 1:1 ratio measuring the extension of the whole 3 based on the end of 4 Minor wave, to give us the at least price of the 5, is at the $666,34, when the 5 Minor wave, has already gone to the $620,57. Thus, the rule of 1<3<5 for expanding diagonal stands.
In such a way, it can be proved that the corrective pattern is not going to be a zig-zag or a flat. Thereinafter, we will have the upward (B) and the decline of (C) Intermediate waves.
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