I am not an Elliott wave specialist, but I do use that methodology to help qualify wave 4 pullbacks in an uptrend. And in the case of Tesla’s stock (TSLA) pullback and Tuesday’s price reversal, an Elliott wave 4 low may be in place.
The recent pullback recovered the lower end of the regression trend channel, and we have an ellipse buy signal that triggered on Tuesday’s reversal.
The 5/35 oscillator below pulled back just enough to qualify the recent decline as a “normal profit-taking” pullback.
We need to see how price trades at the 50-day moving average at $771. Should it exceed that level, then the upper end of the price channel around $920 would become a target.
If recent lows hold and momentum gathers steam, then the MOB price target band at $1030 could be hit in the weeks to come (with an MFU-4 extreme target as high as $1160).
Patience though, positions need to be managed with discipline (stops) as TSLA approaches its 50 day MA.
$TSLA Tesla Stock Chart
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