Hey, what's going on, my name is matt, and this channel is all about stocks trading and investing in this video. I will be speaking about the premier electric vehicle company, which is of course tesla. I have a pretty exciting update for you, because i think that it could lead to a positive catalyst for the stock or to put that another way. I think that we could be seeing another breakout pretty soon.

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 for the remainder of the week. This will help you better understand the current situation in terms of risk and reward, but before we get into all that, 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're interested in free stocks make sure to check out the links to both weeble and robin hood in the description of this video, if you sign up and make the appropriate deposit you get free stocks, While i get one free stock, it's a win-win and now with all that out of the way, let's get started. So what is the hot new tesla news, the tesla t, if you will well, it was just reported that tesla delivered its first shanghai made model y crossover in china. This was announced on monday january 18th and it was a big deal to the company and clearly its stock.

I mean geez it gapped up 15, because not only is china a massive market, but it's a uniquely large electric vehicle market, which means that it's very important to tesla's overall growth and success with hitting its goal of 20 million annual deliveries over the next decade. A lot of the hype and excitement for tesla stock is centered around the company's vehicle delivery numbers. Just a year ago, elon publicly stated that he wanted to deliver 500 000 vehicles in 2020 and at the time most people laughed it off and thought that the goal was unachievable well fast forward to the end of 2020. Musk and company ended up hitting the goal, and now the stock is trading very close to its all-time high.

I have absolutely no doubt that if elon and tesla can successfully scale to 20 million annual deliveries, the stock will continue skyrocketing straight to the moon. Now, in the intro i know i made it seem like there was only one recent catalyst for tesla, but guess what i have even more good news for you. Jeffrey's analyst felipe something raised the firm's price target on tesla from 650 up to 775 dollars per share. Now this isn't the biggest catalyst, but it is pretty cool to know that more wall street analysts are coming around to the idea of being bullish on tesla stock.

The next big catalyst will happen on january 27th, which is when tesla will report its q4 earnings announcement. In the past, these quarterly reports have served as some pretty notable catalyst for the stock, so i would highly recommend being prepared for some pretty serious volatility on both the 27th and then again on the 28th. In the meantime, though, let's check out, what's going on in the charts alrighty on the screen, now is tesla's daily chart and it kicked off the training week. On a pretty bullish note, the stock gained 2.2 percent, which means that tesla is now trading at eight hundred and forty four dollars per share.

Now, if you're like me and just think it's a matter of time before tesla hits a new all-time high, let me know by dropping a like your engagement really helps this channel out thus far in 2021 tesla's up 18.6, which by most metrics is very impressive. This is the current technical situation that tesla stock is currently in if you're new to the channel. Here's a quick recap of what's been going on. I know i just added quite a few things to this chart and it may seem confusing, but it really isn't give me a quick moment to explain.

What's going on these yellow lines are price levels of support and resistance, as in areas that the stock could bounce off of or be rejected from these white lines are trend lines and on the bottom here we have the rsi indicator, which stands for relative strength index And it's a momentum indicator that basically tracks bullish momentum versus bearish momentum when it gets very high. That is a lot of bullish momentum and when it gets very low, that is a lot of bearish momentum. A lot of traders and investors use this indicator for reversion plays as in when it gets pretty high. They then look for the stock to sell off and when it gets very low, they look for the stock to rally now that you know what's going on with all these thingymajiggies, let's talk about what's been going on with tesla stock from a pretty high level view From march of 2020, until now, the stock has clearly been in a bullish uptrend.

The last major all-time high was just above 500 and that came right after the company's 5 for 1 stock split from there tesla did end up selling off, and then it ping pong back and forth, and it formed this triangle structure in the world of technical analysis. This is referred to as a bullish, pennant and that's just because the stock commonly breaks upward following the triangle. This led to a double top rejection at 462 and then tesla sold off and found a new support at 380.. This is important to point out because all the way back from mid-august up until really now but specifically mid-november tesla, was consistently posting higher lows, which is definitively a bullish trend up until mid-november tesla stock really wasn't doing much and then on november 16th.

It was announced that tesla would be included in the s p. 500. This is a pretty big deal because there are a lot of fund managers out there who run portfolios that basically mimic the s p 500. So when tesla's put into the s p 500, it means that there's quite a bit of money that now has to buy the stock and, as we all know, from our economic classes, when you're talking about supply and demand.

If demand goes up, while supply stays. The same, that means that the price shoots upward and that's exactly what happened in tesla stock. From the point of the announcement until right now, tesla stock has rallied a very impressive 109 percent, obviously from then until now, other technical things have developed, but the one thing i would like to bring to your attention is down here in the rsi. All these relative highs are also associated with spikes in the rsi and after it gets up to a certain value, which is by no means etched in stone.

We see a either decline or a small period of consolidation, and once again that is what we've been seeing right now we hit the all-time high of 884 and since then the rsi has been cooling off a bit and that's also reflected in the stock, essentially being Range bound over the past six days, let's zoom in a bit just so we can see more about what i'm talking about. So basically, tesla tried to break out above this trend line. It ended up being a fake out breakout. This was associated with a spike in the rsi, the very next day it sold off and eventually found support at that key psychological level of 800 and then over the next five days, it's essentially been range bound between 820 and 860..

This type of action is very common in the stock market stocks commonly oscillate between periods of expansion, consolidation back to expansion, and vice versa. As you can see here, it expanded, consolidated, expanded and once again we're consolidating. This means that sooner rather than later, we will see another period of expansion, but the golden question is: in what direction will that expansion be? Will the book camp end up winning or will the bear camp end up winning? Now i wish i could definitively tell you which way the stock would break. Unfortunately, i can't - and neither can anyone else on this planet trust me if i knew the answer to this question, i would be rich and retired on some beach somewhere, but i'm not with that being said.

You should know that i'm very much long-term bullish on tesla. I think that the company will be wildly successful years down the road, but for now that doesn't have much of an impact on what the stock will do over the next couple days or really even weeks. However, we can get a better idea on what might play out by examining these charts. Let's switch over to the four hour time frame.

Before i jump into this chart, i wanted to quickly mention that the name of this charting software is trading view and if you want to try it out, there's link to a free 30-day trial in the description of this video, okay back to tesla. So, from mid-november, up until the start of december, the stock was trading in this upward channel, which i have marked by these trend lines in the world of technical analysis. Upward channels are referred to as bear flags, and that's just because they commonly break downward. This time support was found pretty quickly at 541 and then on three separate occasions.

The bull camp tried to get the stock back into this upward channel, but the third attempt was an official rejection and tesla was knocked back down to 560, which was pretty important because it marked another higher low, which means that tesla was still successfully trading in an Upward pattern: the next high came just below 700, and this came the day before tesla was put into the s p 500. Once again, this happened just because a lot of fund managers were basically forced to buy shares of tesla from there. It was slightly knocked down and then this eventually led to a double breakout and clearly a rally in tesla stock. It broke above this trend line.

Then we had another level of resistance, pretty close to 700 and from there it was pretty much off to the races for the stock. Once again, let's just zoom in a tiny bit here most recently, we do have some pretty interesting things going on after tesla hit its current all-time high of 884, the stock sold off down to 800. This particular move really wasn't that surprising, because take a look at how blown out the rsi was when you see levels of i mean this was very high of 89. It's really not that uncommon for the stock to take a bit of a breather.

That's exactly what tesla did and then from there it pushed up to 868 and we got the formation of this triangle which we did see back on the daily chart. These are referred to as bullish pendants and that's just because they commonly break upward and that's exactly what tesla did, but there really wasn't much follow through. Instead, when it broke above this trendline, the stock essentially became range bound in between 830 and 860, and then there was a slight breakdown and it eventually found support at this bottom trend line, which then brings us to today where we're seeing a small bounce. You should know that tesla stock isn't quite out of the woods yet there's still a considerable chance for somewhat of a healthy correction, but from a technical perspective.

I really like how the stock was able to bounce off of this trendline retake. This support turned into resistance at 832 and, while all that was happening, the rsi had a chance to cool off, so we're no longer in that severely overbought territory. As long as this bullish action keeps up, we are on our way to testing the next resistance. At 860 dollars - and i am expecting quite a bit of a fight there, because it's exactly where tesla was rejected on four separate occasions.

If the bull camp wins this fight, then the next resistance would of course come at the all-time high of 885.. However, to be fair and balanced, you should know that if the stock can't hold this support at 832, which also pretty much aligns with this bottom trend line, then the next support would come at that low of 820 and from there we have 800, i'm in no Way attempting to scare you or call for doomsday in any way i mean i'm invested in tesla. I very much want the stock to go up, but you should know at least from a technical perspective. If the bull camp can't hold the support at 800, the next one isn't all the way down to 750, followed by 720..

I don't think that this bear scenario is really that likely. I just wanted to fully present the entire situation. You should know that the ideal situation moving forward is not only for tesla to get above 860, followed by 884, so it can make a new all-time high, but when this most likely plays out you're going to want it to bring the rsi with it. To a point that it gets above 89., we need to get above 89 because if it doesn't, when it makes a new all-time high, we would have a situation which is referred to as bearish divergence.

Now i don't want you to get confused by that term. All it means is that the stock's at a new high, but the rsi isn't hence its divergence and it's a bad thing, because it's commonly indicative of a future decline or at least a period of consolidation. If that happens, i'll discuss it more then, but all you need to know is that when you see a new all-time high, you very much wanted to bring the rsi with it. As we wait for all this to play out, i would highly recommend paying attention to the upcoming earnings announcement, which will be at the end of january and also in terms of these price levels.

Make sure that you're watching 832, because if this support is given up the stock, will most likely go down, but if it's held i would then be looking for a test of 860.. I would love to know your thoughts on tesla in a comment below when the current period of consolidation ends, which way do you think that the stock will break upwards or downwards? Also, how do you think that tesla stock will react to the upcoming earnings announcement, which don't forget is on january 27th? Make sure that you mark your calendars, because i'm expecting some serious volatility. Also, don't forget that if you want free stocks check out those links to both weeble and robin hood 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 moon gang by hitting the subscribe button, your support is truly appreciated.

Thanks for watching and until next time best of luck in the markets, you.