Tesla probably finished this Friday a leading diagonal. Because it made a new low, one has to consider a new impuls down has just started. Personally expecting bounce in April to 200-210 levels with consecutive sharp reversal until June 2015. Wave 4 could unfold during July with some 38.2% retracement of wave (3). A final low of this 1 year corrective move could occur in October 2015 as a traditionally weakest month for stock market.
My strategy:
1. Will sell Tesla around 200 with stop 218. I will do it ONLY, if we have end of April and SPX 500 makes new highs (possible around 2140-2170).
2. Will close my shorts around 137.5 (expecting 161.8% extension of a leading diagonal move).
3. Will reshort once wave (4) retraces 38.2% of wave (3).
4. Will close my 2nd short trade by 120 and will go long with stop by 110.
5. Will close my first long position on Tesla by 560-570 (expecting at least 161.8% extension of ((1))).
INVALIDATION: Move in Tesla above 225.
10th April 2015: entry short Tesla at 211.16, stop 215
My strategy:
1. Will sell Tesla around 200 with stop 218. I will do it ONLY, if we have end of April and SPX 500 makes new highs (possible around 2140-2170).
2. Will close my shorts around 137.5 (expecting 161.8% extension of a leading diagonal move).
3. Will reshort once wave (4) retraces 38.2% of wave (3).
4. Will close my 2nd short trade by 120 and will go long with stop by 110.
5. Will close my first long position on Tesla by 560-570 (expecting at least 161.8% extension of ((1))).
INVALIDATION: Move in Tesla above 225.
10th April 2015: entry short Tesla at 211.16, stop 215