Chart of the day

Where do we stand fundamentally?

Tesla stock has been testing its 2021 highs, with analysts showing optimism and caution. Bank of America downgraded Tesla from Buy to Neutral but raised its price target, indicating a belief in long-term growth despite short-term uncertainties. Various analysts have adjusted their price targets upwards, with a consensus that the stock ranges between $380 and $480. They are expecting stabilization or a significant move post-earnings call.

TSLA has been rejected from the strong upside resistance of 480 which is also a possible third-wave top and an upside channel resistance. My KNOWPO trading system indicates a good low-risk short trade here, as I expect a reversal downside to continue further in a medium-term consolidation fourth wave. A breakout below 374 will lead to an acceleration lower.

A break above 430 will invalidate the downside reversal and lead to a reversal higher immediately in the fifth wave to revisit 490.

_{You can take a short trade entry with a stop loss above 430 to target 330.}