After that Tesla recently made an impulse down since the 5th of April it has been indicating for a short term bottom or simply for the end of its' correction. This analysis is showing a short term bullish price action but the longer term is still unclear.
ABC scenario:
From the 4th of November 2021 until the 24th of Februari 2022 Tesla has been going down in, what I believe, a leading diagonal* as wave of a zigzag**.
This was then followed by a 3 waves move (ABC) of (also being a zigzag) ending the 5th of April 2022.
Lastly, an impulse as the wave with a 5th wave extension ended the 12th of May 2022.
If this was indeed the wave which didn't make it to become 100% of but realized a new low, then we should now move to an all time high without making any new low under .
Impulse scenario:
Instead of having the leading diagonal as a wave , it could also be the first wave of a bigger impulse.
This would mean that wave would instead be the first wave (1) of .
If this scenario plays out instead, we will just have a short term bullish 3 waves sequence that would end around the 50 or 61.8% fib retracement of wave (1) of (the red box) and then falling further down to new lows.
*A Leading Diagonal: is a 5 waves move that happens in either in wave 1 of an impulse or wave A of a zigzag. It's a the only bullish 5 waves sequence (with the ending diagonal) where the 4th wave of it breaks below the top of the 1st wave. Its' subwaves are usually 3 waves sequences.
** Zigzag: A 3 waves move where the first and the third leg are themselves 5 waves impulses separated with the middle leg which is a 3 waves correction.
ABC scenario:
From the 4th of November 2021 until the 24th of Februari 2022 Tesla has been going down in, what I believe, a leading diagonal* as wave of a zigzag**.
This was then followed by a 3 waves move (ABC) of (also being a zigzag) ending the 5th of April 2022.
Lastly, an impulse as the wave with a 5th wave extension ended the 12th of May 2022.
If this was indeed the wave which didn't make it to become 100% of but realized a new low, then we should now move to an all time high without making any new low under .
Impulse scenario:
Instead of having the leading diagonal as a wave , it could also be the first wave of a bigger impulse.
This would mean that wave would instead be the first wave (1) of .
If this scenario plays out instead, we will just have a short term bullish 3 waves sequence that would end around the 50 or 61.8% fib retracement of wave (1) of (the red box) and then falling further down to new lows.
*A Leading Diagonal: is a 5 waves move that happens in either in wave 1 of an impulse or wave A of a zigzag. It's a the only bullish 5 waves sequence (with the ending diagonal) where the 4th wave of it breaks below the top of the 1st wave. Its' subwaves are usually 3 waves sequences.
** Zigzag: A 3 waves move where the first and the third leg are themselves 5 waves impulses separated with the middle leg which is a 3 waves correction.