 Welcome traders to another TickMail earnings report preview with me Patrick Munley. Before we jump into today's report as always we want to adhere to the risk disclaimer and most important for this presentation is the fact that the views expressed by me are solely mined and not indicative or representative of those held by TickMail UK or TickMail Europe Limited. Okay let's jump into today's report and today we're looking at Tesla Tesla announced earnings after the close of New York trading today. The earnings per share estimate is $1.81 on revenue of $16.521 billion. So Tesla reporting after the close the focus really is going to be on how well the electric vehicle maker managed costs and mid-soft delivery numbers. Tesla's ability to preserve margins this quarter will be front and centre. The focus really now shifts to the outlook for the remainder of this year. Tesla delivered 254,695 vehicles in Q2, roughly in line with the lower Wall Street estimates. Around 70,000 were wiped out of the quarter with Tesla's Shanghai plant shut down for two months due to COVID restrictions. Facts that analysts expect deliveries to ramp up in the second half of 2022 with chip supply slowly increasing. Wall Street sees Tesla notching up 1.4 million units by the end of the year. Of course no one is really sure how Chinese officials might deal with another COVID surge. While Giga Berlin and Austin factories are in significant ramp up mode this production capacity expansion is really aimed at 2023 and beyond. However recession fears and growing competition from US based automakers as well as Chinese and European rivals could limit Tesla's growth. Nevertheless based on reservation orders globally for model-wise demand for Tesla vehicles is still outstripping supply. By about 15-20%. Meanwhile Tesla laid off workers from its San Manteo office that employed about 276 staff. Tesla CEO Elon Musk said company plan to cut about 10% of its salary staff. Investors will also be looking to get more details on the earnings call about the recent departure of Tesla AI chief. Tesla's autopilot software has been in the crosshairs of freight drill regulators as it investigates several crashes in which autopilot software appeared to be engaged when the Tesla slammed into stationary emergency vehicles. Meanwhile Tesla's Musk is headed for a lengthy call battle with Twitter after pulling out of the deal to buy the social media company for 44 billion. So let's take a look at some of the statistical trading patterns around the Tesla earnings release. Tesla shares have moved lower in the immediate aftermath of earnings 7 out of 12 previous reports. On average stock moved down 0.6% in the first day of trading after the company reported earnings. Based on the previous 12 earnings releases Tesla is more likely to trade lower one day after earnings for an average loss of 0.8%. On average the stock has moved higher by 3.4% one week after earnings. Let's see what the options traders are pricing in in terms of volatility around the earnings release. Options traders are pricing an 8.6% move on earnings. It's felt though as averaged only 6.5% move in recent quarters. From a flow and sentiment perspective there's been notable by 46,733 contracts of the 750 call expiring on Friday. Options order flow in general though has been bearish. Investor sentiment going into the company's earnings has 35% expecting an earnings beat. Tesla share price has drifted down negative 28.5% post earnings announcements. Using the last 12 quarters of data the average drift between earnings announcements is 35.2%. So with all of that in mind let's take a look at the technical setup. Putting in the Tesla chart here we are looking at the daily and weekly data. So weekly data here on the right hand side. It's notable that we test into the equality objective at 618. Pretty much traded it to the to the cent there. We're also sitting right on the 50% retracement of the 2020 low into that 2021 high. So technically we have completed a corrected pattern on the daily timeframe. We're sitting in this triangle. So what we can see here is that we're currently above the high volume low. We had a bullish reversal pattern yesterday and momentum is bullish and the momentum studies are bullishly aligned. So the setup here looks to be for an extension to the upside. We know that 750 call buying. So for me any move that takes out the triangle resistance here 760. I'd like to engage on the long side looking for a move up to test the next high volume lows and the 127 extension of the consolidation here at the $839 level. Now that's the primary scenario. A secondary scenario will be to the downside. We get an earnings miss and poor outlook. I'd be looking for a break of the triangle support. So any move back down through $660 to retest the price cycle lows at 622. And then I'd be looking for a move into the monthly projected range support down just below $600. Now if we did get that move, how would anticipate that would attract some bids in the market. And certainly I'd be looking for any quick reversal back through that $600 level to the upside as an opportunity to engage on the long side. Certainly then we think about a move back into test that $706 high volume low as the next upside objective. As always trade us, plan the trade, trade the plan and most importantly manage all risks. Until next time, thanks very much. Thank you.