What's going on moon gang, i hope you're having an awesome day. My name is matt and on this channel we work together to take our stock portfolios to the next level. In this video i will be discussing the leading electric vehicle company tesla tesla just reported its third quarter, earnings which brings up the question: where is it stock, headed to next? To get a better idea of the answer to that question? I'll briefly be touching on what was in the earnings report and what the analysts are saying about it and then i'll be doing a technical breakdown of tesla stock. But before i get into all that fun stuff, if you're new to the channel, don't forget to join the moon gang by hitting the subscribe button, my goal is to hit 5 000 subscribers by the end of this year and your help with that would be truly Appreciated also, if you enjoy this type of content, it would be great if you could drop a like, because it really helps with getting this video in front of other people who may be interested and now with that out of the way, let's get started.

Tesla had its q3 earnings call on wednesday october 21st, and i don't want to go into extreme detail because there's already many videos that do that. So i'll give you the quick highlights. One analyst said that it was a major step forward for the company tesla's third quarter. Earnings report beat expectations.

The electric vehicle company had its fifth straight profitable quarter and surpassed expectations on cash flow, gross margins and adjusted earnings per share. Third quarter, adjusted earnings per share were 76 cents versus the consensus estimate of 55 cents. Tesla reiterated its goal of 500 000 deliveries in 2020. I think that this last part is the most important because it seems to be the main metric that analysts care about, but as you're about to see.

Analysts in no way have a consensus on tesla web bush securities, which has the second highest price target at 500. And a neutral rating said, we view last night's quarter from tesla as another major step forward in the company's ramp around model 3 deliveries as well as profitability heading into 2021.. Rbc capital markets has a lower price target at 339, which is up from 290, but they still have an underperform rating and that's because they don't think tesla will be able to hit the delivery goal of 500 000 vehicles. Goldman sachs has a price target of 455 with a neutral rating.

Jp morgan has a comically low price target of 80 with an underweight rating, and they said that expansion into higher volume segments with lower price points seems fraught with greater risk relative to demand execution and competition. Piper sandler has the highest price target at 515, with an overweight rating and finally, credit suisse has a price target of 400 with a neutral rating. As i said before, wall street in no way has a consensus on tesla. Some are treating it as a run-of-the-mill automotive company, while others think it's more much much more.

I obviously hope that the bulls are right, because i'm a tesla investor myself, but the only thing i know for sure is that this was tesla's fifth profitable quarter in a row, so it will be very difficult for the s p to not include it. I mean, after all, tesla is the most valuable automotive company. Now i touched on this in my previous tesla video, but if and most likely when tesla is included in the s p 500, the stock will have a nice pop and that's because index funds will be forced to buy shares of the company and as demand increases. So does the price anyway enough of that and tesla's excellent q3 earnings.

I said i would keep this portion of the video short. So now, let's switch over to the technicals alrighty. This is a look at tesla's, five minute chart tesla trades under the ticker tsla and when the market closed for the day it was at 425.79, which means tesla was up 0.75. I was honestly a little bit surprised about today's action.

The total volume of shares traded was 39 million, which wasn't that far off of the average volume over the past 10 days, tesla has a market cap just under 400 billion dollars and, as you can see here, from q3 of 2019, all the way up to q2 Of 2020 tesla has been a profitable company, and that also includes q3 of 2020, which is yet to be included over the past week. It's down almost four percent over the past month. It's up 13 over the past three months, it's up 52 and from the start of 2020. Until now, tesla is up a noteworthy 415 percent.

I am a little bit surprised about how the stock performed today, because, as you can see here in this big green bar, there was a lot of excitement when tesla first released its earnings report and in fact it held all the way into the pre-market trading of Today, but when the market opened, there was an abrupt sell-off and it ended up bouncing right where the stock closed. Yesterday, then, from there it consolidated in a tighter and tighter range and then right at the end of the day, there was another small sell-off and it essentially closed at the low of the day. There are numerous things that could have caused this, including profit taking or perhaps the earnings call didn't quite fit the narrative that wall street was expecting and many other things so to get a better idea of what we should look for next, let's zoom out to the Four hour chart on this time frame. We can see that tesla's been caught in an ascending triangle.

Since september 8th, it's been putting in higher lows and higher highs, but the new highs are just barely higher. As you can see from this technical structure, the stock is currently at a pretty important point. One of two things could happen: first, it could bounce from here which would mark the third lower high or it could break down, which would invalidate this structure. If the first scenario were to play out, i would recommend watching 448, because this is where the stock was rejected in pre-market trading and also back in the start of october.

Then, if the bull camp can push the stock above that the next resistance is relatively close by at 462, which essentially aligns with this top trend line. There is an incredible amount of demand here, as you can see by the fact that the stock was rejected right in this region on multiple occasions, and even though i don't think it will happen in the immediate future if the bears become weaker and the bulls push The stock above that would then set up a test of the all-time high at 502, but on the flip side, if the stock doesn't bounce from here, you better pray that it catches itself at 412, which is exactly what happened many times before. If this support doesn't hold strong once again, there's a good chance, the stock could fall all the way to between 360 and 350.. If the stock were to fall below this region, things could get ugly and they could get ugly quick from a technical perspective.

This would be a new lower low and it would officially mark a change of trend. As things currently stand, i do favor scenario number one at least a portion of it. I think there's a good chance that tesla bounces between 426 and 412 and then returns to the resistance between 462 and 470. I'm favoring this particular situation, because tesla had a very good q3 and the overall technical trend is still bullish if you're a swing trader.

The current risk to reward is very favorable. If you were to invest now at 426, you could risk 412, which is roughly 15 and in terms of reward. You could target 465, which would be a gain of 40. that spread of essentially two and a half to one isn't a bad deal when you're talking about not only the leading ev company but the most valuable automotive business, i'm personally, not a swing trader, i'm more Of a long-term investor, so for all of you that fall into that category, let's check out tesla's daily chart on this time frame.

Things look slightly different from mid-august until the start of october tesla was caught in this wedge structure, which was created because of the stock split announcement. We were making lower highs and higher lows until it was able to break upwards in the start of october. On october 14th, tesla was able to officially put in a higher high relative to the previous one. Unfortunately, it was swiftly rejected at the resistance of 462 and it was smacked all the way down to this trend line over the past three days.

The bulls have been able to hold this line, but it does make me wonder how much more do they have in them if the bears end up winning this fight from the most recent close, the first support would be a decline of 3 and if the stock Falls below that there is a chance. It could come down to 360, which would be a decline of 15, but on the other hand, if the bulls managed to get the stock to bounce, the first resistance would be a gain of 5.5. Then the resistance at 462 would be a gain of 8.5 and then the all-time high at 502 would be a gain of 18 moving forward. I believe that tesla's fundamentals and technicals are more supportive of the bullish case, but with that being said, things such as the stimulus package and the us presidential election could cause some serious volatility, so please be prepared in an effort to be as transparent as possible.

I do currently own shares of tesla and my cost basis is the low 400s i'm risking 412. So if the bulk camp can't hold that line i'll cut all of my shares for a small profit as an investor, i clearly don't want that to happen, and i would prefer to take my profits off the table above 550, as things continue to develop both fundamentally And technically i'll make sure to keep you updated and also keep you in the loop with what i decide to do with my shares of tesla. Make sure you have your notifications turned on, so you don't miss any of my future videos. In my honest opinion, i think that tesla stop will do exceedingly well in the coming years.

Tesla is the leading company within the ev sector, which, by all accounts, will have incredible growth over the next decade and in more of a short-term view, tesla has consistently been putting in higher lows and i personally wouldn't be worried at all. As long as the support in the low 400s holds and don't forget, if and most likely, when tesla is added to the s p 500, there is a very good chance. The stock will have a nice bullish upswing, but with that being said, these are my own opinions and i'm not a financial advisor. So please do your own research.

I would love to know your thoughts on tesla stock in a comment below. Are you buying holding or selling, and what are your price targets? My entire goal with this channel is to provide as much value as i possibly can. So if you have any suggestions on how things could be improved, feel free to, let me know if you're looking for a group of traders who talk about this type of stuff on a daily basis, i would highly recommend smd trading. There's a link in the description of this video and there's also links to a free trial of the charting software that i use and the weeble trading platform.

If you sign up for weeble and make the appropriate deposit there's a chance, you could win a stock. That's valued up to sixteen hundred dollars. If you enjoyed this video and you wan na support my efforts in making more there's a few things, you could do to help me out. You could drop a like leave a comment and join the moon gang by hitting the subscribe button.

All that engagement really helps with the youtube algorithm and getting this video in front of other people thanks for watching and until next time. Best of luck in the markets, you.