Tuesday, September 2, 2014

TSLA update

In this post I modeled a TSLA top to be rapidly approaching.  I saw one more small move up to ~$275 before a breakdown.  Today's strong push to $284 now appears to be a 5th wave ending diagonal throwover which is likely to peter out mid channel.  I left the original count number in place but basically blue 3 should be counted as 1/5, blue 4 = 2/5, red 3 = 3/5, red 4=4/5 and now red 5 = 5/5.  If this count is correct it must come crashing very rapidly back down through the top rail of the small rising wedge and then take out the lower rail as well.  The big break down would be the lower rail of the expanding wedge after which I would expect a re-test of resistance from below before a 3rd wave drops the bottom out of the chart.

There are no amount of "fundamentals" that could make me buy this chart.


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