Tesla Update: B wave or wave 3?

Tesla rose over $16 today for what was an expected retrace. The problem with timing B waves is they can be unpredictable, which is why I tend to stay away from them. But if you manage to enter at the right place, they can be a lucrative quick trade. This structure that barely touched my box technically has 3-waves so it can be considered done, or this move up could be a minor a wave for the larger B wave of (2). Due to the timeframe, I believe the latter is more likely.

If that is the case, then tomorrow I would expect us to drop around $5-$10. Then we would see another rise for C wave into the box I have marked Wednesday or Thursday. If this extends out tomorrow, and digs deeper into my target box, then I would consider my other count to have prevailed. That would mean that the B wave would be very quick, so the C wave could be strong and quick as well.

The other possibility is marked in turquoise. This suggests we have already bottomed in (2) and are about to take off to the upside. I find this scenario at this time unlikely. Sure, it's not impossible, but to me structure looks as though we haven't even finished B of (2).

If we drop the $5-$10ish I am thinking, then I will most likely enter into a very small position to try and capture $15+/share profit for the end of B. If price rises, I will remain on the sidelines until we finish (2). In the off chance we started 3 I will wait for a good entry. Either way, as always, I will post any and all trades I make regarding Tesla on here. If I were to enter a trade, know I would be using tight stops, and I will only enter if price is doing as I predicted.

Bonam Fortunam,
--Tyler

Kommentar:

We need to finish out this 15min bar green, then make another low in price. At that point I will enter into a small position.

Kommentar:

If we get that OML, I will most likely buy some shares even if it is after hours. Please note tomorrow will most likely be very volatile and I will probably sell whatever I buy before the fed meeting at 2pm EST or tighten my stops substantially...which they would already be tight soooo

Kommentar:

My limit order is at $263.5...let's hope it drops back down to fill...if not then I'll wait for another setup

Kommentar:

My order did not fill last night. Due to the volatility and the fact I'm at work and can't watch during the fed announcement I am remaining flat of Tesla. I expect it'll get a nice jump up...but it could always tank instead. As I said I can't watch it so I'm out

Kommentar:

If price makes another low BEFORE raising up to $280 area I will start to very seriously consider this b wave to be short and over...I want to see us continue rising from here or the next price point will most likely be in the $230 area