The dynamics of the recent increase on the Tesla values showed that we have very real chances of ending the entire hyperbolic rally. This is a classic picture that precedes the solstices, after which the entire increase collapses. Price in just over a week increased 80%. The risk for long positions was therefore enormous.
Yesterday the price reached almost $ 1800, and currently the CFD on Tesla shares is traded below $ 1500. Such a strong change may therefore suggest that a turning point has been reached and at least a deeper correction awaits us.
Where can Tesla go back to?
Given the principle of equality of corrections (orange rectangles), you can pay attention to around $ 1200. Slightly lower, i.e. under the level of $ 1000, you will also see horizontal support resulting from the February highs area. It can therefore be assumed that in the $ 1000-1200 area there is a chance for some defense, while the style and scope of possible rebound will show whether the sentiment for the asset has broken down permanently, or whether there will be money willing to fight for a return to highs. In the short term, after such a breakdown and the euphoria preceding it, buyers can now get scared.