Elliott wave view in Tesla (TSLA) suggests the stock rallies as an impulsive structure from September 25, 2019 low. The stock is currently within wave (3) and the internal is unfolding as a 5 waves impulse Elliott Wave structure. In the short term chart below, we can see wave 2 ended at 538.43 and wave 3 rally ended at 968.99. The subdivision of wave 3 unfolded as lesser degree 5 waves. Up from 538.43, wave ((i)) ended at 659.8 and pullback in wave ((ii)) ended at 618.
Tesla then resumed higher in wave ((iii)) towards 940.13 and pullback in wave ((iv)) ended at 851.76. The last wave ((v)) rally ended at 968.99 which also completed wave 3. Pullback in wave 4 is now in progress as a zigzag Elliott Wave structure. Wave ((a)) of 4 ended at 860, and bounce in wave ((b)) of 4 ended at 930.63. The stock can see another leg lower in wave ((c)) of 4 towards 100% – 123.6% Fibonacci extension towards 755.31 – 822.39 before the rally resumes. We don’t like selling the stock and continue to favor the upside in the sequence of 3, 7, or 11 swing. As far as pivot at 538.43 low stays intact, expect the stock to continue higher.
