The monthly chart shows TSLA pullback lower after reaching a strong upside resistance of 300. It is testing the short-term support 254 for another attack on 300 higher or a complete reversal of lower to 220 where major support lies.
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The Weekly TSLA chart reveals a possible bullish bounce from 254 for another attack on 294. A confirmed break below 254 will open the empty space of price action fall to 225 which represents the key support. A break below 225 will validate the Elliott Wave count indicating one more downside wave is coming.
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As the famous trader says…
” You don’t need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ.”Warren Buffet
How to trade this?
It is a fact that a strong upside resistance for Q3 is 294 and we have seen a rejection from it. If we get a confirmed break below 254 we could see an extension lower to key medium-term to long-term support 225. A break below this level would mean a complete turnaround. Near-term long-trade entries have a lower probability of success until we see a clear break above the resistance 294. There is a possibility of long trade entry and short trade here. We can open the long trade here with a little risk and stop the loss below 254 and the short trade if we get stopped from the long trade. Also, there is a trading strategy with options that can be combined. This is a crucial level for the market and we are now seeing a test of it. Be careful with the entries.
