TSLA: Example of A Fibonacci Price Cluster

TSLA is one of the stock charts we follow every day on both the daily and intraday charts.  It provides a recent example of what I call a Fibonacci Price cluster.  A price cluster is the coincidence of at least 3 Fibonacci price relationships that come together in a relatively tight range.  

In the TSLA example, we had a price cluster that came in for possible support at the 379.57-382.32 area.  This zone included a .618 retracement of one swing, a 50% retracement of another swing along with a 100% projection of a prior decline.  

Note that we tested this zone on 11/14 and put in a low at 382.78 which was just slightly above the top end of this support. This was not a perfect hit, but it was absolutely close enough to use for a trade setup.  

So far we've seen a rally of $76.09 off this key support.  We still see potential to eventually reach the 498.90 area as the initial target for this setup.  We always suggest that you trail up stops as you go however, just in case we don't meet that target.  So far so good.