What's up moon gang, i hope you're having an awesome day. Well, it's official tesla is now in the big leagues as of monday december 21st. Tesla stock is officially in the s p 500 index. As expected, the stock is closing the year out with quite a bang.

In this video i will be sharing my personal thoughts on how tesla will perform in 2021 and then i will be doing a technical breakdown of the stock. So we have a better idea of what might happen between now and the end of the year. But before we get into all that, don't forget to join the moon gang by hitting the subscribe button and dropping a like all that support is truly appreciated and now without further ado, let's rock and roll. To put it simply, i think that tesla stock will continue to push higher as the company continues to dominate in 2021 and most likely well beyond.

I strongly believe that the future of the auto industry is evs and autonomy and guess what tesla is the leader in both of those fields, as of now evs account for roughly two and a half percent of all yearly vehicle sales, which is about two million. However, by the year 2025 that could grow to as high as 40 percent, which would translate to 40 million electric vehicles. This demand inflection could pick up even faster as evs reach, a price parity with common gasoline vehicles through a business model they call vertical integration. Tesla is working to improve battery technology and lower the cost if they can pull this off, that would allow them to offer the public electric vehicles for the highly competitive price of 25 000.

To me, tesla is uniquely positioned to be a massive beneficiary of the current social and political push towards evs, but it gets even better, not enough people talk about tesla's potential in ride. Hailing some estimates have the value of a robo-taxi industry as high as two trillion dollars. What's really cool about this is not only is it recurring revenue, but it would vastly overshadow the revenue from tesla's vehicle sales. Obviously, though, there are quite a few technical hurdles that would have to be overcome to make this a reality, but i assume they would start things off slowly.

They could start with a human-powered network, so they could get certain things in place, such as payments, routing and etc. Then, when the technology is finally there, they could slowly transition into a robo network. In my opinion, tesla has an immense amount of potential, which is exactly why i'm bullish on the stock, not only in 2021 but far beyond, don't forget, i am not a financial advisor, so i would highly recommend that you do your own research. My predictions could definitely end up being wrong, but all i know is for certain is that people who bet against tesla have been wrong time and time again.

Alrighty after tesla's first day in the s p 500, the index ended up, dropping 0.36 percent and tesla itself was down 6.5. This puts the stock just below 650. The total volume of shares traded was a little light compared to its own 10-day average. Personally, i found this a bit surprising because i really thought there was going to be more action.

However, across all the major time frames, tesla is definitely in the green and in fact, over the last year, tesla is now up an astounding, almost 700 percent. This 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: the last major relative high was at 500, and this came in early september right after the company's 5 for 1 stock split. When that went through, there was a sell-off and stock ended up, ping-ponging back and forth and formed this bullish pennant.

This eventually led to a bullish, breakout and a double top rejection at 462, then from mid-october. Until the start of november, tesla did end up selling off and it eventually found support at 380. after that, for the first half of november, tesla really wasn't doing much, and then it was announced that tesla would be added into the s p, 500. Obviously, everybody and their brother absolutely loved this news, because since then the stock has been on a rocket ship directly to the moon.

Since the point of the announcement until now, tesla is up 59 in terms of the bigger picture. Tesla stock is clearly in a bullish. Uptrend from march of this year, until right now, the stock has consistently been hitting higher lows, higher highs and making a lot of people a lot of money. With that being said, though, some of the recent technical developments are making me think that there might be a small pulled back in the near term.

Now, i'm in no way trying to sound any alarms. In fact, i think this could be good news because it could lead to an excellent investment opportunity from a technical perspective. Here are the two major things i'm seeing on this daily time frame. First is pretty obvious: the stock had a fake out breakout and we're now back below this trend line and second deals with the rsi.

If you look at the last relative high and then where we are now, even though the stock has gone upward, the rsi hasn't this is referred to as bearish divergence and it's commonly assigned that a decline, or at least a period of consolidation may ensue. When you put these two things together, along with the fact that today's close was below the previous resistance of 654, it's telling me that this recent rally from mid-november until now may be getting a little over exhausted. As i said, though, this is good news because it could lead to us being able to buy shares of tesla at a discount before its next leg. Higher.

The closest support based on the most recent close would come just above 600 past that we have 566, which is a relative low from december 10th and past that we have 541, which is where the stock found support in early december to get to those three respective Levels, tesla would have to drop six percent, twelve percent and finally, sixteen percent, if this were to play out, which i'm not saying that it has to but depending on how quickly it happens. This bottom trendline could also serve to bolster these supports. Keep in mind that technical analysis is never perfect, and this could just be the bulls ruining the dreams of the bear camp once again, and the stock could very well bounce right away or it could come down to this support and then bounce the first major resistance. I would recommend watching would come at 695 and past that we would have to let price discovery play itself out to test this unfounded territory.

I really do like the price level of 700, because that would be a nice psychological target from the most recent close to get to 695. That would be a gain of seven point: six percent and then to hit seven hundred dollars on the nose. That would be a gain of over eight percent. As things continue to progress, i would highly recommend paying attention to how tesla reacts to the previous resistance turned failed support at 654 and this bearish divergence in the rsi.

After that, you should be watching the closest support at 607 and the closest resistance between this trendline and 695. now to get a better idea of what tesla might do over the next few training days. Let's check out the four hour chart before i hop into this. I wanted to quickly mention that the name of this charting software is trading view and, if you're interested in trying it out, there's a link to a free 30-day trial in the description of this video.

Okay back to tesla. So from the moment of the announcement back on november 16th, up until december, 1st tesla was caught in this bear flag and, as its name suggests, they do commonly break downward. When that happened, support was found at 5 41 and then the bull camp stepped back in pretty much immediately then, on three failed attempts getting back into this upward channel. The stock was finally rejected and knocked down to 566..

This led to kind of a boring range bound period and then eventually we had a failed bullish. Breakout on this time frame. You can better see the bearish divergence in the rsi i was talking about. If you take a look at the relative high from late november and then again on december, 9th you'll see that even though the stock went higher, the rsi didn't and we did have a small sell-off and then once again, if you look at that high from december 8Th and then the most recent high, we have a very similar situation.

The stock went higher, but the rsi didn't. I would in no way be surprised if tesla ends up building a new foundation at a strong support before its next leg upwards. The big question is: what will that support be? We do have this major one at 607, but it's not out of question for tesla to bounce at yesterday's low of 630 or this resistance at 6. 45..

Now i don't have a crystal ball, so i can't tell you tesla's exact future, but i do feel confident that once a new foundation is built and the rsi has a chance to cool off, tesla will have everything it needs to then make an attempt at a New all-time high as a tesla investor. Not only am i looking for the stock to make a new all-time high, but i'm looking forward to bring the rsi with it, so we can get rid of this bearish divergence. If, before that happens, there is a sell-off. I would view it as an excellent investment opportunity to pick up tesla at any of these major levels of support, as things continue to develop, both fundamentally and technically, with tesla i'll make sure to keep you updated in future.

Videos so make sure you have. Your notifications turned on. I would absolutely love to know your thoughts on tesla in a comment below how do you think that the stock will perform in 2021? Personally, i'm very bullish on the future of tesla but feel free to? Let me know if you think i'm missing something i'm more than willing to have a discussion. If you enjoyed this video, it would be greatly appreciated if you could drop a like leave a comment and join the moon gang by hitting the subscribe button.

All that support really helps this channel out. Also, two quick reminders: don't forget that this training week is a shortened one because of the holidays and if you're interested in free stocks make sure to check out the link to the weeble trading platform. In the description of this video, thanks for watching and until next time best of luck in the markets, you.