Review
We have run Tesla Downside targets in the past.
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September 8, 2018 (FAILED)
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July 7, 2020 (FAILED)
All parabolic moves get corrected by a specific amount, at minimum. Because a declining trend has begun, we have run the numbers of the expected downside targets based on Edson Gould’s Speed Resistance Lines.
The targets are:
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$238.35
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$202.23
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$166.11
The previous FAILED downside targets had significant problems that could have been easily remedied. First and foremost, for highly volatile stocks like Tesla, we did not include downside targets assuming the price would double. This is usually the most likely scenario to play out and is best represented in our September 13, 2018 targets for Tilray (TLRY).
At the time, Tilray was trading at $118 and we had laid out our downside targets for the stock as seen for Tesla above. However, acknowledging the psychological component of the change in the price, we included downside targets for Tilray if the price doubled ($236) [within the chart]. In fact, Tilray did double shortly afterwards and the downside targets for the doubled level were achieved, by a wide margin.
The doubling downside targets for TSLA are (assumes $996.64 peak):
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$404.45
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$368.33
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$332.21
We’re glad to have failed the previous times as it refines and teaches what we need to know about the limits of Edson Gould’s work. We hope to continue the process of learning as we teach.
See also:
Top three downside targets achieved by year
2020
2019
2018
2017
2016