What’s Driving TSLA?

Last week on the Hit & Run private Twitter feed, I flagged a short setup in TSLA using the Square of 9 Wheel.

As the Sq of 9 below shows, 685 is square July 12.

Mid-April, red
685, purple
July 12, blue

TSLA has rallied from a double bottom at 547 on May 19 up to the 700 region.

The square of 9 below shows that May 19 is square 700.

May 19, red
700 purple

TSLA pulled back, followed by a rally on Monday to close at 685.

My expectation was that this represented a test failure of the 700 pivot high.

As such, TSLA may have carved out a bearish 3rd lower high since its January 900 ATH.

Interestingly, the prior peak in TSLA in mid-April aligns with 685, which is square this mid-July time frame.

If I am correct about another lower high in TSLA, breakage below 659 opens the door to 633, with a drop below 633 targeting 608.

A complete 360 degree decline from the 685-700 region targets 599-585.