You will come across specific terms in these notes (FLD, VTL, and so on). Rather than explain them each time, you will find definitions here: guidance notes for Hurst cycles terminology
Tesla – weak 40 day trough zone, 80 day and 20 week cycles down.
In the last note of 20 October (chart below) we were looking for an 80 day cycle trough into the last week of October.
This 80 day cycle trough came in pretty much on schedule time-wise although about 10 points lower than the bottom of the target box (circa 202). So let’s update the analysis here:
Update: this is a slightly tricky analysis, but here goes the preferred view: we look to be in a weak 40 day cycle trough zone and are expecting a slight uplift into the 20 day cycle peak. Bear in mind, however, that both the 80 day and 20 week cycles are falling, which is a headwind. The next 80 day cycle trough is expected in the first week of January and the analysis suggests a push higher and then a sharp decline to around 210/220.
The alternative view is that there is no uplift and there is a breakdown here and now. We will know this if the 20 day VTL and 40 day FLD just below are aggressively broken to downside.
This post was first published on Hurst Cycles Notes.
