Cycle Trading

Tesla reported earning Wednesday, after hours. A few highlights include:

• Operating cash flow, free cashEnergy storage flow exceptionally strong.
• Energy storage business with margin exceeding 30%.
• Operating expense decreased
• Net Income would have exceeded $3B without a larger ‘other expense item and additional restructuring charges.

Tesla Bulls are pleased and has Tesla trading at 243.17 in the pre-market, forming an island reversal. Assuming the Tesla closes at or near this level would have Tesla close above the upper daily cycle band. Closing above the upper daily cycle band ends the daily downtrend and begins a daily uptrend.