On Tuesday, I will looking at Tesla (NASDAQ:TSLA) stock, which as you know has impressive gains for the last few weeks, due to speculation surrounding Trump's US presidential election win and connections with Elon Musk. This has fueled expectations of easier regulations for self-driving Tesla cars.
But looking at the structure, the current rally from 340 appears to be coming out of a triangle and has now reached the 400 area. Its the key swing high from 2022 and 2021, suggesting the potential for a pullback in the coming weeks.
So I think its better to wait for the next wave (4) retracement rather than chasing the market at these levels. If a wave four pullback occurs, support could be found between 311 and 350, especially if the decline unfolds in three waves.