In today’s article we will look at the recent performance of Tesla Inc. ($TSLA) through the lens of Elliott wave theory. We will examine how the rally from the November 4, 2024 low played out as a 5-wave pulse and discuss our predictions for the next move. Let’s dive into the structure and expectations for it action.

Five-wave pulse structure + ABC correction

$TSLA Elliott Wave one-hour chart 11/15/2024

In the 1-hour Elliott Wave countdown of November 15, 2024, we see that $TSLA completed a 5-wave impulsive cycle starting on November 4, 2024 and ending on November 12, 2024, at blue (iii). As expected, this first wave caused a decline. We expected this pullback to play out in 3 moves, likely finding buyers in the evenly split area between $304.08 and $278.90.

This pattern aligns with a typical Elliott Wave (ABC) correction pattern, in which the market takes a brief pause before resuming the main trend.

$TSLA Elliott Wave one-hour chart 11/18/2024

The most recent update, from November 18, 2024, shows that $TSLA reacted as expected. After the decline from the blue peak (iii), the stock found support in the even leg zone, leading to a new rally. As a result, traders were able to adjust to take no risks, which confirmed that the uptrend remains intact.

What’s next for $TSLA?

With the current rally, $TSLA appears well supported. Based on the Elliott Wave structure, we expect the stock to continue its upward trajectory, targeting the $377-$400 range before another potential pullback. It is therefore essential to continue monitoring this area as we approach it.

Conclusion

In conclusion, our Elliott Wave analysis of Tesla Inc. ($TSLA) suggests that it could continue its uptrend, with significant upside potential in the near term. Therefore, traders should monitor the $377-$400 area as their next target, keeping an eye out for any corrective pullback. Using Elliott Wave Theory, we can identify potential buying areas and improve risk management in volatile markets.