When Tesla (TSLA) was trading at $734.70, we said the following:
“Parabolic increases rarely go unchecked. This typically means that a decline to the conservative downside target is the norm, at minimum. However, Tesla has had a history of defying the “norm” when it comes to price change.”
At that time, February 5, 2020, we provided the following downside targets:
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$507.09 (conservative target)
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$401.39 (mid-range target)
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$295.69 (extreme target)
Seventeen days after our downside price targets, the price of TSLA increased as high as $917.42 on a closing basis. The increase in price marginally affected the downside targets for TSLA. So far, Tesla has achieved two of the three downside targets and looks to easily achieve the last target (extreme downside target).
Below are the updated downside targets for Tesla Inc. (TSLA).
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$517.21 (conservative target)
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$411.51 (mid-range target)
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$305.81 (extreme target)
Pendulums swing from one extreme to another. We’ll watch to see if the extreme to the upside is matched on the downside.