Tesla

In the case of Tesla, we need to decide whether the recent top as wave 5 of the one-year rally or only wave 1 of 5. In the 1st scenario, it would mean a long-run consolidation before we can look for another move higher. In the 2nd scenario, we may start wave 3 of 5 towards 1253 over the next couple of months. The recent low of 540 is a little more than 66% retracement of the last rally and to that low holds, we may look to the upside.