What's going on moon gang, let's talk about tesla, my name is matt, and this channel is all about stocks trading and investing in this video i'll do my best to prepare you for the upcoming week. Not only am i expecting abnormal volatility in the entire market, but specifically tesla. The company has an upcoming earnings announcement so i'll, let you know what to look for in that and then i'll be doing a full technical breakdown of the stock i'll be showcasing. How tesla is currently in a pretty rare and very bullish pattern, but before i get into all that, if you enjoy this type of stock market content - and you want to stay up to date with me, all you have to do is join the moon gang by Hitting the subscribe button also make sure you check out the links to robin hood and weeble if you want free stocks and now without further ado, let's get started it's earning season.

For those of you who don't know earning season is a term we use for a several week period where a lot of companies are reporting their previous quarterly performance and setting goals for the future quarters. All of these announcements can easily impact the overall volatility in the entire stock market. We have several heavy hitters this upcoming week, including facebook, apple and tesla wall street is expecting tesla to report in earnings per share of 85 cents and a revenue of 10 billion dollars. They're also looking to learn more about tesla's goals for 2021 in terms of their vehicle deliveries.

This should be set around 850 million and they're also looking to learn more about the two factories that are under construction. If tesla can deliver on these expectations, i would fully expect an upswing in the stock's price, but if tesla misses on these expectations, i would expect a momentary decline. Whatever scenario ends up playing out, please be prepared for some volatility before we hop into the charts and technical analysis. I want to quickly answer a question from a previous video.

I really think that it's worth some discussion, this one comes from dr t-bone, really makes me think of mr t from those rocky movies. Oh, and just so you know this is in reference to neil, but i really think that it applies to any stock on the entire stock market. He said, thank you for your insight. If you would buy as many as you could at fifty dollars a share, knowing that it's going to go much higher, why wouldn't you buy at sixty dollars a share? This is a great question.

Thank you very much for sending it in. To put it simply, i like to buy at levels of support, because i know i'm not a perfect trader, no matter how confident i am in a stock, i'm never going to have a 100 batting average, because of that i like to buy. As close as i can to support, because not only does it minimize my overall risk, but it helps optimize my risk to reward keep in mind that training. This way is my personal style, and it means that i have missed out on some pretty profitable opportunities.

But it's also safeguarded me from pretty serious declines. Once again, this is my own style and i highly recommend that you play the market in whatever way, best suits your own personality on the screen. Now is tesla's daily chart it closed out the third trading week of january pretty much flat, and the stock is currently at 846 dollars, thus far in 2021, tesla's up a very respectable 20. This is the current technical situation that tesla's in for those of you who are new to the channel.

Let me quickly explain: what's going on these, yellow lines are levels of technical support and resistance, as in areas that the stock has bounced off of or been rejected by. These white lines are trend lines that the stock appears to be following and on the bottom. Here we have the rsi which stands for relative strength index and it basically maps bullish momentum against bearish momentum when it's high, that's a lot of bullish momentum and when it's low, that's a lot of bearish momentum. Now, let's rewind back to the start of september, tesla managed to hit just above 500, and this came right after the company's five for one stock split from there.

The stock was pretty much consolidating all the way up until mid-november, and that's when it was announced that tesla would be put into the s p, 500. And since then, the stock has been on an absolute rocket ship from mid-november all the way up until the first week of january, the stock rallied from 400 all the way up to the current all-time high of 884. As a quick side, note i'd like to point out how all these relative highs and also the current all-time high, are very much associated with spikes in the rsi. It's pretty common to see a lot of bullish momentum, and then this leads to a period of either consolidation or a sell-off, and that's currently what tesla stock is in right now, don't forget that the stock market really likes to oscillate between periods of consolidation, expansion and Vice versa, take tesla for an example.

We had an expansion up to 500, then it consolidated for quite a while another expansion, consolidation, expansion, consolidation. So now the golden question is: what is the next direction of the big expansion gon na be well? I have good news for you. As things currently stand. The technical setup is a very bullish one.

Let me zoom in a bit, so i can better explain what i'm talking about. I actually had to crack open my own technical analysis books to get the name of this current setup. Typically, when we see a sizeable run up like this, and then it's followed by a triangle where we're seeing lower highs and higher lows - that's referred to as a bullish pennant and they do commonly break upward. But this one's a bit different and it's actually referred to as a high tight flag.

Now the silly name aside, it's very very similar to the bullish, pendant and the main differentiator - is basically the velocity and speed at which the stock ran up, and i have very good news for you. These have a high track record of not only breaking upward but having a considerable percentage gain following the breakout, according to technical analysis and historic performance. A break right above this high of a84 would be theoretically the perfect buying opportunity and in terms of tesla, i would in no way be surprised if a rally is up to 950, which is a fibonacci level and past that we have the key psychological level of One thousand dollars keep in mind, though this high tight flag does have a very good track record, but it's not 100 accurate. As in.

If tesla can't deliver on the upcoming earnings announcement and the stock sells off, i would recommend paying attention to the closest levels of support which would come at 820, followed by 800, and if the bulk camp can't defend this one, the next drop would be all the Way down to 7.45. Personally, i am very much bullish on tesla from a fundamental perspective. I think they'll do exceedingly well during the earnings announcement and from a technical perspective. I think once the stock gets above this previous resistance at 860, which is where it was rejected.

Multiple times before, it will go up test 885 and then we'll have another breakout. Even though i am personally bullish. Keep in mind that this is in no way a riskless trade, something can go south, nothing is ever guaranteed in the stock market and, as i showed you, there is a decent amount of downside in the current setup to get a better idea of how the stock Might perform over the upcoming week, let's switch over to the four hour chart as a quick reminder, the name of this charting software is tradingview and if you want to try it out, there's a link in the description of this video alrighty back to tesla. So, from the point of the s, p 500 inclusion announcement up until the start of december.

The stock was trading in this upward channel, which i have outlined by these white trend lines. This in the world of technical analysis is referred to as a bear flag and that's just because they commonly break downward. That's exactly what happened with tesla and support was found very quickly at and 840 dollars from there. The bull camp quickly regained control and on three separate occasions, try to get the stock back into this channel.

But the third attempt here was an official rejection and then the stock was knocked back down and we had a nice higher new low at 866. from there. The stock slowly grinded higher, we had a new relative high the day before the tesla was put into the s p 500 and then eventually this led to a double breakout, not only of the trend line, but that key psychological level at seven hundred dollars. And then this is what led to the high tight flag that we saw and right now the current all-time high is 884..

Most recently, we do have some interesting developments and to me it screams that the stock is consolidating basically just waiting to see how the earnings announcement plays out after tesla hit the all-time high of 84. This was also seen with a massive spike in the rsi, so it's pretty much expected that the stock would sell off or consolidate, and it did that eventually bounce off of 800. Then we saw a lower high right around 860, which formed this bullish. Pennant slash high tight flag.

Eventually, this did lead to a breakout, but we didn't see the follow through that really anyone expected instead, after the breakout, it quickly came back down to reaffirm this trendline and essentially, since january 12th. The stock has been range bound between 835 and 860.. It is pretty important for tesla stock to hold this new trend line, but in my personal opinion, the real battle is going to come down to these two price levels at 8, 30 and 860.. If the bull camp can get the stock above 860, i'm fully expecting a test of the current all-time high and most likely we'll see a new all-time high once again keep those levels of 950 and 1000.

In your mind, on the flip side, though, if the stock breaks below this trend line and the boat camp can't hold 830, i would then maybe expect a support to be found at 820, but i would really be looking for the stock to return to 800. If in some weird world that the bear camp can really push the stock below this one, there is a considerable amount of downside all the way down to 750.. These are the two technical possibilities and, as things currently stand, i am very much favoring the bull camp from a technical perspective. I really like how it has been staying above this trend line.

We have three separate hits. We are getting this new wedge structure so, on the umpteenth test of 860, i'm confident that there eventually will be a breakout and if we take a look at the rsi, it's very much neutral. So i like how it's no longer in this overbought territory and then from a fundamental perspective. I'm hoping that some very positive and bullish things are announced on wednesday at the upcoming earnings announcement, which will really help serve as a catalyst and help push the stock to new highs over the next few training days.

I would highly recommend paying attention to how the stock reacts to 860, because this will be the site of a breakout or a breakdown. Technically and fundamentally, we have some bullish things going on, which gets me very excited, but don't forget that earnings announcements can very much be a flip of a coin. If something negative comes out of the earnings report, the stock can instantly drop. So i don't want you betting too.

Much on this particular play. Don't forget that in the world of trading, yes, it is awesome to make incredible returns, but what's even better is minimizing your losses. I would love to know your thoughts on tesla. Are you bullish on the earnings announcement bearish on the earnings announcement? How do you think that the stock will react if you have any questions, feel free to post them below, and you could always join a live stream, which i do every sunday? If you enjoyed this video and you want to support this channel, it would be greatly appreciated if you could drop a like leave a comment and join the moon game by hitting the subscribe button.

All that engagement really helps me out. Also, don't forget that if you want free stocks make sure to check out those links to robinhood and weeble in the description of this video thanks for watching and until next time best of luck in the markets, you.