What's up moon gang, i hope you're having an awesome day today, i will be sharing an update on tesla and its stock. First i'll be going over a recent announcement related to tesla's expansion into india, then i'll be covering some pretty bearish comments from wells fargo and, finally, i will be doing a technical breakdown of tesla stock, so we know what price levels to pay attention to over the Next few trading days, but before i get into all that fun stuff as a quick reminder, don't forget to drop a like and hit the subscribe button. All that support is truly appreciated and now without further ado, let's get started well. This is something that should get the bulk camp excited.

Tesla is once again looking to expand its reach tesla to make india debut early next year. According to a top indian minister, tesla will begin operating in india. In early 2021., tesla's operations will begin with sales. In early 2021 and then maybe look at assembling and manufacturing vehicles in the country, there are some rumblings about a new gigafactory in india, but none of that has been confirmed quite yet.

Overall, i do think this is a pretty smart move. India is a pretty considerable market, it's the largest solar power market and it was announced by 2030. India will only be selling evs, it seems, like things are aligning pretty nicely for tesla. However, not all analysts are so bullish on the stock.

It was just reported that wells, fargo's top predictions for 2021 include a warning for tesla investors. Chris harvey of wells fargo released his 10 predictions for next year and his number one prediction was tesla becomes the new aol when he was talking on trading nation. He said it reminded us so much about 1998. The late 90s aol similar to tesla had a game-changing technology, incredible performance and it goes into the s p 500 index late in the year in december, after an amazing run, but it was a seminal event.

Here's mr harvey's reasoning, aol the former king of media, saw its influence unraveled because it failed to keep up with the rapid pace of technology. Harvey warns that the electric automaker could suffer a similar fate after 1999. Many tech and growth companies lost 50 to 100 percent of value, we're thinking in 2020. Everything happens much faster, so if it took 12 months for the end to begin now, it's going to take 6 months now.

Obviously, everyone is entitled to their own opinion. It's what makes the world go round, but i personally believe that chris harvey is dead wrong. First of all, he was talking about failed to keep up with the rapid pace of technology. Tesla is literally on the cutting edge of automotive, autonomous and ev technology, and i really don't see a world in which, over the next six months, that tesla loses 50 to 100 of its value.

To me, it's just an impossibility. As of now, tesla is the leading ev company and over the next decade the ev wave will continue to get bigger and bigger because of the current social and political push, i'm in no way guaranteeing that tesla will gain another 700 next year. But i strongly believe that it will be positive on the year and it will most likely not even get close to losing 50 percent no less 100. I'm really starting to think that wall street analysts come out with headlines and opinions like this just for clickbait, because when it comes down to it the bears have been absolutely destroyed by tesla's stock alrighty.

The market is now closed. For the first day of the last week of the year and three of the major indices were all in the green and so was tesla tesla stock managed to gain 0.3 percent, which puts it just below 664 dollars from the start of the year until right now, Tesla's up an incredible 700: 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 summary of what's been going on the last major relative high came at the start of september, and that was just above 500. This happened right after the company's five for one stock split after this point, tesla ended up, selling off and eventually found support at 330 dollars.

Then the stock ping pong back and forth a bit and it formed this triangle, which is also referred to as a bullish. Pennant, it gets its name because it commonly breaks upward and that's exactly what happened, and this led to a double top rejection, just above 460 dollars from mid-october until the start of september, tesla, the ev sector and really the overall market sold off and tessa eventually found A new higher low at 380., this led to two weeks of pretty boring action, which is a word. You really don't hear that, often in reference to tesla and then in mid-november it was announced that tesla would be included in the s p 500 and this absolutely skyrocketed tesla stock. From the point of the announcement to right now, tesla is up 62 and at its all-time high it was up 70, as you can see.

Most recently tesla was rejected at this trend line, which is formed from that last relative high at 500, and then the most recent relative high from mid-december. It is worthwhile to note that this rejection is coming on the back of some bearish divergence. What i mean by that is from mid-december up until december 17th. The stock did make a new relative high, but the rsi didn't.

This divergence is referred to as bearish divergence, because it's commonly assigned that the buyers are starting to get a bit exhausted. And it's common to be followed by a period of consolidation or potentially even a decline. If this bearish momentum were to continue, the next support would come at 654, which is where the stock was rejected on december 9th past that i would recommend watching 607, which is where tesla bounced on two occasions and was also rejected in late november and from there. It is a bit of a reach target, but i would recommend paying attention to this bottom trend line.

On the flip side, though, if these five trading days is all the consolidation that tesla stock needs and today's rejection was more of a fake out just a screw with the bear cam's head, it can be argued that the rsi does now have enough room to run And if that were to happen, the first resistance would come at 695 and past that we would have to let price discovery play itself out to understand the new technical levels of resistance in more of a general sense. I'm in no way saying that this has to happen, but i would personally be very interested in investing in more shares of tesla around 600, which could potentially align with this trend line and the previous support of 607. Now, to get a better idea of what tesla stock might do over the next few training days, let's check out the four hour chart when you include pre and post market trading, you can better see this upward channel that tesla stock was caught in from mid-november up Until the start of december, these channels are referred to as bear flags and that's because they commonly break downward and that's what tesla stock ended up doing and eventually support was found at 541 from there the bulls tried to get tesla back into this channel on three Separate occasions and on the third failed attempt, tess was then knocked down to 566. from there.

The stock didn't really do much as we were waiting for it to be put into the s p, 500, and then the day before inclusion, there was a fake out breakout, which led to an undershoot of the support at 608. From a technical perspective, this was not a good breakout to buy one of the reasons we know that is because check out this bearish divergence from the last relative high on december 8th compared to this new all-time high. Clearly, the stock was a greater value, but the rsi wasn't this divergence led to a sell-off and a bit of consolidation, which is what we've been battling with most recently, whether tesla decides to bounce at 658, 645, 620 or even 608. The main thing we want to watch for moving forward is as tesla breaks out and hits a new all-time high.

We wanted to bring the rsi with it, so there is no divergence moving forward. I would highly recommend paying attention to how tesla stock reacts to this trend line on attempt number four and also be prepared for a pretty sizable move. As you can see, these swings from high to low and back again have been getting smaller and smaller and in the world of trading periods of consolidation are followed by expansion, as things continue to develop with tesla from both a fundamental and technical perspective. I'll make sure to keep you updated in future videos so make sure you have your notifications turned on.

I would love to get your thoughts on tesla. What do you think about the company's expansion into india and do you think it's realistic that tesla's stock price could get cut by more than 50 percent over the next year? Because i surely don't think so. Also, as a quick side note, i'm thinking about starting a new series where i actively trade an account and share all those moves with you. If that's something that you'd be interested in, let me know by dropping a like and leaving a comment thanks for watching and until next time best of luck in the markets, you.

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