FX.co ★ Elliott wave analysis of Tesla for October 20, 2022

Tesla peaked back in January 2021 and has since been in an expanded flat correction as wave B went above the peak of wave 3 at 300 and closed at 414.50. We see a possible S/H/S top building but need a break below the neckline support at 206 to confirm the top formation and a decline towards at least 136 and possibly even closer to 118 before a corrective low is in place for wave 4. As for the long-term outlook, the expected decline can take many months to complete.

However, for now, we are looking for a possible break below 206 that will open up for the expected decline towards 136 and possibly lower.