Tesla update

In this post I recently called a top on Tesla.  That was Oct 5th 2013.  The summary of my thesis in that post follows:

I think that the 1st wave down has begun and also that wave 2 back up is nearly done.  Guess what that leaves next in line.  That's right, a big fat 3rd wave down. that will likely have a big gap down in it (AKA cliff diving).  I like Tesla cars but I would not be anywhere near this stock when it collapses and that collapse looks like it could be imminent.  

As luck would have it, today, Oct 8th 2013, Tesla shares plummeted more that 4% in a single day.  I think this is just the start of a major sell off for Tesla and my current price target is down around $100, perhaps as low as $93 (the 61.8% fib retracement).

So let's break down the chart action since I predicted "a big fat 3rd wave down".  What I see is a declining double top forming off of the big 2nd wave which temporarily broke back up into the channel before falling right back through.  Folks, those 2 things in conjunction with each other signal real weakness in big shareholders.  You can see that after wave 2 up, we started forming what I think will eventually turn out to be 1 of 3.  There was a wave down, a wave part of the way back up (to form the declining double top that I just spoke of, and then a big plunge which then formed a triangle.  Trangles are always penultimate waves so I assume it will break down a few more bucks into a 5th of 1 of 3.  Then up into 2 of 3 followed by a big gap formed by a cliff diving, investor shocking 3rd of 3rd wave down.

Hopefully some TSLA investors have heard about my blog and are considering my wave analysis this time.  It does not look at all good for TSLA shareholders right now.