The Q3 green candle failed to cancel the bearish Q2 candle by 5 points! You cannot make this up. $TSLA is possibly on the brink of a big decline. Let’s have a look at the candles and waves (no subscription required).
The Q3 candle stopped 5 points short from canceling the bearish doji of Q2. It means that the long term odds remain bearish. The chances of a decline are much higher than the chances of a rally.
$TSLA made a 4-month green streak on a declining volume. If we look at a bigger picture, we can see that the stock is still struggling to overcome that monstrous bearish Engulfing in February 2021. For seven months! The odds remain bearish until the Feb candle is canceled.
The weekly is rather neutral. It could be a Spinning Top or could be a bullish continuation. A confirmation is required, ideally next week.
The daily formation a multiple bearish Harami. Four candles are within the body of the Monday Sep 27 candle. There is a chance it resolves upwards, but it is rather slim.
Summary: The longer frames are bearish and it will impact all short-term attempts of rally in the next quarter.
A good chance that wave C of II is about to start down.
– $520-340 (small rectangle), the most probable area of retrace;
– $580-210 (large rectangle).
The target will be clarified once the first waves down are known.
The wave down could possibly stop at the lower boundary of the long term channel (dashed line).
Two weeks ago the subscribers received an alert about this possibility. All further updates will be Premium Content.
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