Chart of the day

Where do we stand fundamentally?

Tesla released FSD V13.2.1, introducing new features and enhancements. However, there have been reports of major issues with the self-driving computer in new cars, raising concerns about reliability and safety.

Tesla is under scrutiny by federal regulators following reports that its Full Self-Driving system might be linked to a fatal accident. Additionally, there's a discussion on whether the incoming Trump administration might eliminate a crash reporting rule, which Tesla opposes, potentially affecting transparency and safety data

TSLA reached 473 resistance, which could be a peak of the third wave. A pullback in the fourth wave could start here before an extension higher in the third long-term wave. This is the possible reversal point short term. My KNOWPO trading system indicates a good low-risk short trade here, so I expect a reversal downside (outlined blue waves representing the short-term cycle).

A break above 480 will invalidate the downside reversal and lead to an extension higher in the third wave to 500. Stocks accelerated higher strongly but the rally at this stage is becoming stretched.

_{You can take a short trade entry with a stop loss above 505 to target 400.}