TSLA has hit the topside of major support
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Our goal is to not only give you actionable information, but to help you understand why we think this is happening based on pure price analysis with Fibonacci retracements, that we believe are the underlying structure of all markets and Gann squares.
For the ONE44 Fibonacci rules and guidelines to help with this article, go here.
Charts are courtesy of Barchart.com
This is our latest video on how to use Fibonacci retracements with the ONE44 rules. Even if you don't trade cryptocurrencies all the guidelines are the same for every market.
The break from the 1225.00 major Gann square has now come into the top end of the key support area at 979.00 to 948.00. The first of these levels is 38.2% back to the 3/5/21 low and the second one is 23.6% of the ATH and ATL. There is also a major Gann square in between at 961.00. The first break from 1225.00 fell just short of this area on 11/10/21 with a low of 987.00. The one day rally from this level took it to 38.2% of the current break at 1087.00, it did trade above this level, however that lasted only 10 minutes. Being this is 38.2% we should be looking for new lows and this happened yesterday at 978.60. This also hit 979.00 which is 38.2%, so on a rally from here we should be looking for new highs and as always we watch all the retracements on any move to see just how strong, or weak the market is regardless of the long term target. With that being said, any rally that fails to get above 38.2% of this current break at 1083.00 should send it back into our key area of support between 979.00 and 948.00. Provided they do take a run at the highs again you will also have to watch 78.6% (1188.00), this is where a lot of Bull runs end, per the 78.6% rule.
Our long term target above remains at 1370.00 and the long term swing point below is at 766.00.
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