Tesla Price Update: Amazon Correlation Supports Collapse into Mid-April

In full disclosure, I’ve been bearish on Tesla for over a year – I think prices are grossly overvalued. Nevertheless, the trend is resilient, as TSLA stays above $800.

AMAZON POST TECH BUBBLE COLLAPSE: In the first quarter of 2000, Amazon shares declined into late January, bounced into early February, declined into Mid-March, rallied into late March, and from that late-March high, prices collapsed over 40% by mid-April.

If Tesla peaks in the coming days and collapses into mid-April, I think the rest of the chart could play out, implying a year-end target for Tesla around $200.

I’m long-term bullish on Tesla and will accumulate aggressively when I feel prices bottomed, likely in 2023.

TESLA TODAY: If Tesla follows the post-tech collapse of Amazon in 2000, then we could see an important top in the next few trading days, followed by a collapse to around $550 by mid-April.

With prices soaring, the odds for a 45% decline within the next 3-weeks seems improbable. Nevertheless, it may be worth watching.

AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle. For regular updates, please visit here.

This article was originally posted on FX Empire

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