By: Jeff Cooper
Hit and Run Trading Morning Report - October 19, 2023
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Why TSLA Was A Short Before Earnings
TSLA reported after the bell on October 18th.
Prior to reporting it triggered a break of a 3 point trend line, a Rule Of 4 Sell signal was issued.
From the July 19th top of 299, 360 degrees down is 234.
TSLA tried to hold 234 after reporting but when that important region broke it opened the door to a full 540 degree drop from high which is 205.
360 degrees is an important price (and time cycle) but in research for my DVD course, Unlocking the Profits of the New Swing Chart Method, I discovered that 540 degrees is more important.
540 degrees is a true square-out cycle.
Because a true square is a 3 dimensional cube.
A cube has 6 sides of 90 degrees each for 540 degrees.