1. Wolfe Wave projection takes us to 420 by end of May
2. Measured move from highest high to lowest low in the past 6 months takes us to 420
3. Real support is found at 420 if we look back at 2020
4. Gap that needs to be closed in same area
I have sold credit spreads (multiple) at 670/700 in June
Incidentally, QQQ will likely go down as well
2. Measured move from highest high to lowest low in the past 6 months takes us to 420
3. Real support is found at 420 if we look back at 2020
4. Gap that needs to be closed in same area
I have sold credit spreads (multiple) at 670/700 in June
Incidentally, QQQ will likely go down as well
Handel aktiv:
Moment of truth! If TESLA takes out the Feb low, then it is in free fall till the target
we see that a descending triangle has been formed. These most commonly are bearish and breakdown at approximately 2/3 to 3/4 of the way to the apex, which is where we are now. We are also at some midterm support. TSLA may rally to a descending trendline - connect all time high with point 5 of the WW pattern, And sell if TSLA reaches that line.
Otherwise expect a potential stall here until TSLA makes its way down to 420 area. Today I sold a June put credit spread at 450/400. I should have sold a 420/400 spread. In any event, I have a high probability that when TSLA reaches 420 it will definitely bounce - probably up to the trendline I mentioned in the last paragraph, which will likely be at today support and will become August, 2021 resistance or 590.
Lastly, if TSLA breaks the 2021 low at Point 2, it will continue to fall - possibly quickly to 420 - roughly 50% of the distance from its IPO price to its all time high!