Welcome welcome, i hope, you're having a downright awesome day. I wanted to give you another quick update on tesla, because not only did the stock have a pretty solid game today, but on top of that, i'm expecting some serious volatility on both friday, the 18th and then again on monday, the 21st, when tesla is officially added To the s p 500, i also have a little bonus for you. At the end, i will be sharing the details of a fun little day, trade i made with tessa, but before we get into all that, don't forget about all that good youtube stuff. It would be truly appreciated if you could drop a like and join the moon gang by hitting the subscribe button and now without further ado, let's rock and roll.

Before we jump into the charts. I wanted to quickly share one way in which you could invest into tesla, with a little bit less risk for those of you who don't know. Etf stands for exchange traded fun, and it can basically be thought of as a basket of stocks. When you invest into an etf, you get exposure to the entire group, which is inherently less risky than an individual stock arc.

Autonomous technology and robotics is an etf that trades under the ticker arkq and when you invest into this etf, you get exposure to quite a bit of tesla, but also google, some workhorse uh, amazon, apple and obviously a lot of other great stocks. Just a little bit of food for thought if you're interested in investing in tesla, but don't like the stock's volatility. Well, if you're, a tesla investor, a huge congrats to you and it's time to light off those fireworks today, tesla managed to hit a brand new all-time high, just below 659 dollars. When the day was over, tesla had gained just over five percent and the stock was at 655.

Today's action was pretty much in line with its own 10-day average, but as a quick side note, i'm expecting this to be much higher tomorrow, so be prepared for some volatility. If you had invested in tesla anywhere from the past week to the past year, you would be in the green and from the start of 2020 until right now, tesla is up an incredible 676 percent. This is the current technical situation that tesla is in. For those of you who are new to the channel, here's - a very brief recap - the last relative high was just above 500, and this came after the company's five for one stock split right after that, though, there was a sell-off down to 331 and from there it Ping pong back and forth and ended up forming this bullish pennant.

This was followed by a bullish, breakout and a double top rejection right around 462, which led to a sell-off and a new higher relative low at 382 over the next two weeks. Tesla really wasn't doing anything and then just like in the avatar one day. Everything changed. However, this time it wasn't the fire nation attacking it was the s p 500 announcing it would include tesla stock at first it looked like it would be, a triple top rejection right around 460, but this was a fake out and the stock obviously exploded from the Announcement until right now, tesla has gained an incredible 61 compared to my last video.

We do have this new trend line which could act as resistance if this bullish momentum were to continue, but in all reality we will most likely have to let the bulls and bears battle it out in this open range area to know the new levels of supply And demand, as things currently stand, i am very bullish on the long-term future of tesla, but to be fully honest, i have no clue how the stock will react to being added into the s p, 500, and anyone who tells you what will happen is most likely A big old fiber, so just in case the stock, does get rejected at this trend line or some new resistance. You should be aware of the closest support. The closest one would be just above 600, which was the last relative low below that we have support at 566 and in between this and 540. We also have the bolstered support of this trend line from where tesla is right now to get to those levels respectively.

It would have to drop 7.5 13.5 percent and 17.5 percent now, if something completely insane happens and tesla really drops, which i don't think that it will. I just want you to know that i would love to invest in more shares of the company right around 500.. I suppose this is more of a dream, though, rather than an actual trading plan. Anyway, i would like to bring your attention to the rsi.

If we take a look at the last two peaks on november 27th and december, 8th you'll see that, even though the stock made a new relative high, the rsi didn't it was a double top. This is referred to as bearish divergence and it's commonly indicative of a future decline, or at least consolidation and right after the second one. That's exactly what we saw. We saw one two, three, four five days of consolidation.

This is a very important technical development because look what's going on right now. Tesla is at a new high, but the rsi isn't moving forward. We will be looking for the stock to continue upward, but we also wanted to take the rsi with it to get above. The 78-ish area, so we can get rid of this bearish divergence to get a slightly different, take on what's going on with tesla, let's check out the 4-hour chart before i jump into this time frame, i wanted to quickly mention that the name of this software is Training view - and i do find it to be pretty useful if you're interested in checking it out, there's link to a free 30-day trial in the description of this video, okay back to tesla.

So, from the point of the s p 500 announcement in mid-november up until the start of december tesla was caught in this upward channel, which is referred to as a bear flag. These are called bear flags because they commonly break downward and that's exactly what happened. Support was eventually found at 541 and then the bull camps stepped back in and tried to get the stock into this channel on three separate occasions on this last rejection, it was knocked down to 560. I'm specifically bringing this to your attention because take a look at this divergence.

The stock made a new relative high in between the start of december and december 8th, but take a look at this rsi. It wasn't higher and from there we did see this sell-off. This is exactly why, as tesla continues to push upward to make brand new all-time highs, we wanted to bring the rsi with it, so there is no divergence in terms of friday and monday. If the bull camp continues to show strength, there might be resistance at this trend line right around 675, but i'm personally not putting too much weight into it and i think there's a very realistic chance that tesla could hit 700 with.

That being said, though, don't forget that no one actually knows what's going to happen. All we know is that serious money will be exchanging hands if tesla happens, to sell off, make sure you're watching the first support just above 600 personally, i'm very excited for. However, this plays out if tesla ends up shooting up. That would be great because i'm already invested in the stock and my cost basis is 400.

However, if tesla ends up falling down, that would also be great because i would view it as an excellent investment opportunity. Speaking of which, most of the time, i am a long-term investor, but every once in a while, i like to have a bit of fun by day trading some options. Today, i did buy some call options on tesla and that's because i thought there would be a fair amount of volatility and bullish sentiment because of the excitement surrounding tesla's induction into the s p. 500.

So at 9 45 this morning i bought call options on tesla. The strike price was 640, the expiration date was 1218 and the premium that i paid per contract was 12 dollars and 70 cents, then at 3 45 today, obviously after tesla was trending in my direction. All day i sold all of those contracts for 25, a pop, which means i gained just over 1200 dollars per contract. Now i want to clarify that this was a very high risk to high reward play, which is why i only used a small portion of my overall portfolio.

It was a bit of fun because when these lotto plays go in your favor, they can really go in your favor for both friday, the 18th and then on monday, the 21st. I would recommend paying attention to these lines of support and resistance and watching for divergence to be formed in the rsi, 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 now. I would truly love to know your thoughts on tesla in a comment below how do you think the stock will react after it's added to the s p, 500 and really how high can this rocket ship run? Also, if you have any questions, feel free to post those as well and i'll make sure to answer as many as i possibly can.

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 game by hitting the subscribe button. All that support is truly appreciated and, as a quick reminder, 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.