RACE, TSLA update 5/8

Time to take a look at some fast cars.

RACE: Ferrari has been on a tear the past year and is absolutely not done yet. The weekly chart shows negative divergence is building on the RSI, which should align with a pending intermediate iv of major 3 wave. We expect intermediate iv to bottom at around $70-75.

race

When we look at the monthly chart, we see no red candle since the major 2 low. hence, major 4 has not even started. since this third wave is very extended, one would logically expect major 3 to top in the 3.236 to 3.618x extension zone, but that’s no guarantee. All we have, since it’s such a new stock is a very overbought RSI5 on the monthly, but no negative divergences yet. The weekly chart above does, so we’ll use that as our guide. As such, once the weekly RSI5 dips below 50 and ideally below 20 it’s time to buy and own a little of this fantastic car company.

race 2

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TSLA: My apology, but I think i overlooked a wave originally and this ticker has still some more upside left (yes Musk is blowing enough hot air ;- )): Please see the charts annotation. This can happen when a 2nd wave retraces almost all of the prior first wave. But a last move higher to the $335-355 (later prefered) target zone for (red) intermediate iii is prefered: see annotation in chart. Then there’s also enough “room” for intermediate iv, which should then drop back to around $310-$300 without overlapping with intermediate i. Intermediate v will then take price to $380ish

tsla 1