Alrighty, let's talk about tesla, i'm sure you have some questions and maybe even some concerns, because the stock kind of closed out the most recent week in a rough fashion. My name is matt and this channel is all about stocks trading and investing in this video. I will be explaining why you shouldn't be concerned about the long-term performance of tesla stock. Also, i will be sharing why an analyst just increased this price target on the stock all the way up to 1 250.

After that, i will also be doing a full technical breakdown of tesla stock, where i map out the key price levels that will be in play over the next few trading days, but before i get into all of that, don't forget about all that good youtube stuff. If you enjoy this type of stock market content, you can stay up to date with me by joining the moon game, all you have to do is hit the subscribe button and turn on your notifications. Also, if you want free socks, make sure to check out those links to robinhood and weeble in the description of this video, and now that i got all that out of the way, let's rock and roll well, if you're like me and you're bullish on tesla, this Headline should put a big smile on your face. It's tesla's world wed bush sees stock at 1 250 per share.

In bold case scenario. Tesla shares are on track to hit 1 250 in bold case scenario, amid robust consumer demand for greener cars globally, particularly in china. According to wedbush securities analyst dan hives, a guy - i talk about a lot on this channel. He has great coverage on both tesla and apple, raised his most optimistic price target scenario and also lifted his one-year price target to 950 from 751 to reflect growing global demand.

For electric vehicles, particularly in china, in his most recent research note, he said the hearts and lungs of tesla. Both thesis is centered around china, as we have seen consumer demand skyrocket into 2021, not just for model 3s, but for impressive domestic competitors such as neo xping and lee auto. As such, we have significantly raised our forecast with our expectations that tesla now exceeds the 1 million delivery threshold in 2022 and could start to approach 5 million deliveries annually by the end of the decade. If global ev demand continues at this pace now, obviously 1250 is a pretty lofty and exciting price target.

But i really don't want you to get bogged down in the numbers, because i believe that the key takeaway here is the analyst's reasoning. The ev sector is growing at an incredible rate, as of now evs account for roughly 3 of all global vehicle sales and that's expected to grow to 5 as soon as the end of this year, and then we can see it grow to 10 by 2025.. I've even read other reports that are saying that this 10 figure in 2025 is a bit conservative. My point here is that, as the ev demand continues to grow, tesla is uniquely positioned to benefit from this trend, and i feel very confident that relative to where the stock is now tesla stock will be much higher years down the road just so you know before We move on.

There is quite a bit more detail in this article, so if you feel like checking that out, it can be found pretty simply with a google search. As a quick side note in my most recent tesla video, i discussed how the stock took a momentary hit because there was a chance that some of the vehicles could be recalled. Well, i have an update for you on that story line and, as i predicted, it seems to be pretty trivial. Tesla asks u.s safety agency to declare speed display issue inconsequential tesla filed a petition with u.s, auto safety regulators, saying that the six hundred thousand plus vehicles produced since 2012 did not fully comply with federal safety standards, because displays can be switched from miles per hour to Only metric measurements, the automaker asked the nhtsa to declare the non-compliance issue inconsequential to safety.

Tesla said it corrected the issue in production in september and that more than 75 percent of the affected u.s fecals have accepted the firmware update. There really isn't much more to this. If anything else develops i'll make sure to keep you updated, but i don't believe that any of these vehicles will be recalled and now, let's check out, what's going on in the charts on the screen, now is tesla's daily chart. It ended up closing out the second trading week of the year by dropping 2.2 percent, which puts the stock at 826.

Keep in mind that thus far in 2021, it is still up 17. Now, if you were fortunate enough to grab any of this rally, let me know by dropping a like your support is truly appreciated. Anyway, here is the current technical situation that tesla stock is in for those of you who are new to the channel. Here's a quick recap of what's been going on just so, you know i really enjoy using the rsi indicator that stands for relative strength index and it's a momentum indicator that basically tracks bullish momentum versus bearish momentum, the higher up.

We get there's more bullish action and the lower we get it's bearish action. A lot of people like to use this in the sense of when it gets overextended in one direction of the other. We are preparing for some sort of reversion from march of 2020. Until now, tesla stock has clearly been in a bullish uptrend.

The last relative high, which stood for a bit, was just above 500, and this came after the stocks, five for one stock split, as you can see at that point, the rsi was very high, and then we saw that reversion i was talking about. Tesla ended up selling off and a new support was found at 335 from there. The stock ended up bouncing back and forth and formed this triangle structure and in the world of technical analysis. This is referred to as a bullish, pendant and that's just because it commonly breaks upward.

This ended up playing out in tesla, which led to a double top rejection right. Around 462., then tesla ended up selling off with the overall market and we saw a new higher low at 380 and when you continually see higher lows, that is a very bullish sign. This time it led to two weeks of pretty boring action, but then, on november 16th it was announced that tesla would be included into the s p 500 and obviously this was received very well by the market, most likely because it forces a lot of fund managers To buy the stock if they're running a fund that closely matches that main index from the point of this announcement up until now, tesla is still up an incredible 104 percent from then. Until now we did see some pretty interesting technical developments on two separate occasions.

It tried to get above this trend line and it was rejected, but then on the third attempt it did lead to a bullish, breakout and rally all the way up to the current all-time high of 884.. It did break out here, but i would classify this as a fake out breakout, because the bull camp couldn't hold that and over the past five days now it's been below this top trend line similar to the spike all the way back in early september, when we Got the relative high, the rsi was very high, just like we saw recently once again. This did lead to a reversion play and the stock has been slightly selling off slightly consolidating. I should probably clarify that the rsi and really any other technical indicator is not perfect.

It's just one tool that you could use to help you make more informed trading decisions, but keep in mind it does not have a 100 accuracy - okay, let's zoom in a bit just so we can see. What's going on now, most recently we saw this fake out breakout all the way up to 884, which was also associated with a high spike in the rsi. Since then, the stock has been consolidating under the trend line for about five days and right now it closed at the low from january 12th, and if this can't hold, i think, there's a very good shot that the stock could come down to reaffirm this support. At 803, i would personally recommend being very cautious around this price level, because if the bull camp can't protect it from a technical perspective, at least the next support isn't all the way down to 740, which is the high from early january, and it could also potentially Align with this middle trend line, however, as i said before, tesla stock is clearly in a bullish uptrend.

So i wouldn't be surprised in the slightest if it decides to pull a u-turn at this support of 826 or even 800, and then shoot back up to the next resistance between 860 868 and past that we have the all-time high of 884. Basically, as things currently stand, i would say that you should pay attention to how the stock reacts to this support at 800., there's a very good chance that it could bounce, but if it doesn't, that means that there is more downside. If this bearish scenario were to play out, i really wouldn't let it worry. You i'm fully predicting that a new support would be found somewhere in this region and as that foundation is being built, it would allow the rsi a chance to cool off, and once that happens, the stock would have everything it needs to push to a new all-time High, whether the bull case plays out the barricades plays out that'll take a bit of time.

So in the meantime, let's check out, what's going on in the four-hour chart before we jump into this, i wanted to mention that the name of this charting software is tradingview and if you want to try it out, there's a link to a free 30-day trial in The description of this video, ok 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 is also referred to as a bear flag, and that's because they commonly break downward. That's exactly what happened in tesla and support was found at 542. from there the bull camp quickly regained control and on three separate occasions.

They tried to get the stock back into this channel, but the third attempt was an official rejection and the stock was knocked back down to 566, so we did see a new higher low, which is definitely bullish from there tesla slowly grinded higher. We saw this new relative high the day before it was put into the s p. 500. Then, after that there was two days of selling and it eventually led to a third attempt of this breakout, and this one was successful.

Not only did the stock get above this trend line, but it broke above that resistance at 695, which led to a very nice rally all the way up to 884., let's zoom. In now, from late december, up until mid-january, tesla stock clearly had a very nice rally, as i pointed out before. Eventually, when we hit 884, the rsi was pretty overextended, which didn't coincide with this sell-off, as we saw before. We now have this triangle structure and when you lead up to the triangle like this, it is referred to as a bullish pendant and that's because they commonly break upward tesla did end up breaking upward.

But for the fourth time it was rejected at 860, which knocked it back down to this trend line where it's sitting right now, if you were watching tesla on friday, you know that it was battling it out at 840, pretty much all day, then, as the market Was about to close the bear camp, finally pushed it through it, which knocked it right to the bottom of this trendline. Now, as a word of warning, you know that i am bullish on tesla, but in the short term, you need to be paying attention to how the stock reacts here. If it can't hold this trend line, there's a very, very good shot that the stock retraces to 800. once again, i'm not trying to hate on tesla, i really like the company.

I really like the stock, i'm just trying to be realistic about the current situation. If this scenario were to play out and the situation gets worse, the next support would be found right around 760 and past that we have the region between 740 and 720. My point here is: is that if you decide to invest in tesla at this price level, be pretty cautious with your trade, if it breaks below, don't be afraid to cut your losses, because the next technical support is a decent drop away. Keep in mind that this drop is in no way guaranteed.

Support could easily be found at this trend line 800 and then we would see a reversion all the way back up to 860, followed by 884 over the next week. It basically all comes down to this, who win the fight at this trendline and who will win the fight at this support of 800. Once again, this is just for the short term. I strongly believe that tessa is a long-term winner.

Also, don't forget that the company has an upcoming earnings announcement, which will be on january 27th and in the past that event has been a catalyst, so make sure you have that on your calendar. I would absolutely love to get your thoughts on tesla. I have two questions for you and more of a long-term view. Do you believe that the price target of 1 250 is reasonable and in more of a short-term view, how do you think that the stock will perform this upcoming week? Let me know in a comment below also, if you want free stocks, make sure to check out those links to weeble and robinhood in the description of this video.

And if you enjoyed this video, don't forget to drop a like, and if you haven't already don't forget to join the moongig by hitting the subscribe button. All of your support is truly appreciated. Thanks for watching and until next time best of luck in the markets, you.