In our last analysis about the Tesla stock using Elliott wave theory, we noted the bearish potential of the price of the company’s stock. Price as expected since our last analysis, has moved lower towards the key trend line support and broke below it.
Red line -support (broken)
Tesla stock price is vulnerable to a move lower. Price has started making lower lows and lower highs. Next support is found at the low of wave B around $590.75. Breaking below this level will increase chances of the bearish scenario and a decline towards $430. Bulls need to recapture the $753 level in order to diminish the bear’s chances. Until then I see trend under bears control.