Keeping it simple, here is a good possible short play.
*This is my observation and thoughts which are provided to serve as educational content ONLY, this is NOT financial advice*
I will admit that I am biased and I think that the market as a whole is at or near a top area with more downside potential than up, so I think there are a lot of charts with similar set ups at this current moment - The R:R is on my side!
Anyways, back to TSLA:
So as you can see, TSLA broke its parabolic rise back in February and as we all know, once a large parabolic move loses its support, it is going to go through a long period of consolidation / retracement before setting a new ATH price. I believe we are currently playing out as a ZigZag (5-3-5) formation.
We had our 5 wave structure down, and we are now nearing the top of the of what would be our B wave within the ABC (5-3-5) structure. For ZigZag patterns, the B wave typically retraces to the .764 and .854 retracement of the A wave structure down - which the .854 is at $878.60, so a good idea for ZigZags is to ladder shorts between the .764 and .854. However, I have more confluence / additional reasons as to why I believe now is a good short opportunity.
I have placed a Gann Fan / Angles at the ATH price to display the relationship and strength of the downtrend - Each angle / line has been respectfully treated as both support and resistances - We can see that the price hit the 4/1 resistance line as well at $866 - so I have laddered shorts between $866-$880.
The target then for a ZigZag (assuming that this is the end of wave B, and beginning of wave C), would be a 1:.618 as well as a 1:1 extension of Wave A - which would be $487.60 and $251.34. I personally would only go for the 1:.618 / $487.60 target as I believe TSLA is a strong company and has a bright future.
In order to maintain a good R:R, I personally placed my SL at $920, targeting $487.60, which gives us a R:R of 7.65!
The price was $870 during the premarket today which provided great entry points.
Thoughts on my trade set-up - Agree, Disagree, Comments?
If you enjoy my content, make sure to 'like' and 'subscribe'!
Thanks
*This is my observation and thoughts which are provided to serve as educational content ONLY, this is NOT financial advice*
I will admit that I am biased and I think that the market as a whole is at or near a top area with more downside potential than up, so I think there are a lot of charts with similar set ups at this current moment - The R:R is on my side!
Anyways, back to TSLA:
So as you can see, TSLA broke its parabolic rise back in February and as we all know, once a large parabolic move loses its support, it is going to go through a long period of consolidation / retracement before setting a new ATH price. I believe we are currently playing out as a ZigZag (5-3-5) formation.
We had our 5 wave structure down, and we are now nearing the top of the of what would be our B wave within the ABC (5-3-5) structure. For ZigZag patterns, the B wave typically retraces to the .764 and .854 retracement of the A wave structure down - which the .854 is at $878.60, so a good idea for ZigZags is to ladder shorts between the .764 and .854. However, I have more confluence / additional reasons as to why I believe now is a good short opportunity.
I have placed a Gann Fan / Angles at the ATH price to display the relationship and strength of the downtrend - Each angle / line has been respectfully treated as both support and resistances - We can see that the price hit the 4/1 resistance line as well at $866 - so I have laddered shorts between $866-$880.
The target then for a ZigZag (assuming that this is the end of wave B, and beginning of wave C), would be a 1:.618 as well as a 1:1 extension of Wave A - which would be $487.60 and $251.34. I personally would only go for the 1:.618 / $487.60 target as I believe TSLA is a strong company and has a bright future.
In order to maintain a good R:R, I personally placed my SL at $920, targeting $487.60, which gives us a R:R of 7.65!
The price was $870 during the premarket today which provided great entry points.
Thoughts on my trade set-up - Agree, Disagree, Comments?
If you enjoy my content, make sure to 'like' and 'subscribe'!
Thanks
Comment:
Seems like everything is going according to plan, a little faster than expected!
Order cancelled