Tesla share price has bounced in June from dynamic support. The $600 level proved to be difficult to break on the way to the downside, despite the slide in the cryptocurrency market.
We should all keep in mind that Tesla’s $1.5 billion investment in Bitcoin is not doing so great, except if the company sold its holdings on Bitcoin’s run-up to $64k. Market participants will find out soon enough if that is the case, because the Q2 earnings are due in July. If it turns out Tesla sold its coins, that would be bearish for the price of Bitcoin but bullish for Tesla share price.
The technical picture favors a triangle as a reversal pattern. According to the Elliott Waves Theory, the price action in the e-wave must pierce the a-c trendline in the case of a non-limiting triangle.
Traders may engage in an aggressive or conservative scenario. Aggressive bears may want to sell short at the market with a stop-loss order at $800 and a target below $500. Conservative bears may want to wait for the market to close on a daily basis below $600 before going short with a stop at the previous lower high and a take-profit level set by using a risk-reward ratio of 1:2.
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