Tesla Update

Price has extended down a little further than anticipated in what I am calling wave iii. You may notice on the chart I have some turquoise labels. These are to show the ALT ways this could be counted. The difference is mostly academic as they both end at the same point. If this is the ideal count, then we should get a retrace higher tomorrow to the high $140's - $150 area as stated in my midday update. That would complete wave iv and leave a mini-5-wave move for OML. After so long of price decreasing it feels weird to say that should be the long-term bottom. however, that is what I am calling for. There is always the chance this thing extends lower, and in fact, would not surprise me in the slightest. The market is in a very precarious position. Also, the historical reaction to Tesla earnings along with the abysmal data that is expected, I would be more surprised if price didn't extend lower. Tesla can fall all the way to the $105 area and still be considered normal as that is where the yellow 1.618 is. The larger orange 1.618 is at $131.18.

Essentially what I am trying to say is very careful. Tesla is historically volatile and can have wild swings either way. Yes, I feel we are in the area for a "STANDARD" ending for price to reverse. However, things don't look good for Tesla from a news perspective. This is what makes me feel price will likely extend lower. If you start to build any kind of position on the long side, make sure to have a plan first. Set a firm stop limit to minimize any potential losses and stick to it. If I am right and we're approaching a long-term bottom, there is still a LOT of meat left on the bones.