FX.co ★ Elliott wave analysis of Tesla for December 29, 2020

In our last update of Tesla, we called for a dip to 126.60, which was seen and even broken as the low was seen at 108.24 close to our ideal target near 90.00. We do think the downside action is a bit overdone at the moment, which is also seen in the RSI making all-time lows. This could mean a period of sideway consolidation before renewed downside pressure towards the 90 target.

That said, this is not the time to try and catch a falling knife, and the risk that Tesla will continue trading lower is too big as a break below 90.00 would call for a move closer to 63.00.