The bullish sentiment for Tesla (US: TSLA) came to a halt in early February when the stock failed to rally beyond 950.00 after the rebound in Mid-February at 612.86. Based on the technical and wave analysis, the stock will continue its bearish momentum.

1. The Elliott wave count suggests that the stock has entered a larger corrective ABC-wave. Current wave action indicate that the stock is forming sub-wave 3 of wave A.
2. As wave 3 needs to reach 161.8% expansion level of wave 1-2 minimally, the sell-off will strengthen further. Furthermore, the 161.8% expansion level is confluent with the bullish gap zone in Oct 2019.
3. The bearish candle has closed below the 200 Simple Moving Average level.

*The technical call is valid for 3 weeks only.

*There is a possible rebound at the 161.8% and it should not be taken as a recovery as it is sub-wave 4 of the A leg, unless 514.45 is broken, which may form a new impulse leg of a new wave.

CHART LEGENDS

Simple moving average

Red line = 200 Period SMA

Blue line = 50 period SMA