The Long Investor

$TSLA TOP 20

Added 2023-10-08 21:28:27 +0000 UTC

I spoke about the timing of $TSLAs recent price cut again announced on Friday, at a time when all companies needed full support as the market was on a knife edge....maybe management believe that hurting the competition is more bullish to them. But there is no denying that vehicle margins are being scrutinised by analysts each quarter.

These further price cuts will not surface until the next quarter, so when $TSLA report this month, we will be seeing the effects of older price cuts, I suspect there will continue to be a trend of decreasing margins.

Back to the chart, I have circled an area in white in Sept and we can clearly see a bounce of 3 waves, if we see a bounce of 3 waves, it means it is a corrective wave, when a corrective wave bounces, it means it is going against the trend....in this case, the trend is lower.....so for me Wave 2 is still not in.

What the bulls will like is that there has been a bounce on the 0.618 Fib (shown in white), which is the typical area to find support for Subwave 2, before going higher.

That all being said, I see $TSLA going higher to $500, so if you are fan, consider a DCA strategy from here, depending on its movements, anything under the yellow trend line is still offering a lot of value.