Hey, what's going on, my name is matt and on this channel i talk about stocks trading and investing now. I thought it would be useful for me to make an update on tesla, because the stock is at a very important inflection point as in you, and i are about to find out if the most recent rally will continue or if we're about to experience a momentary Decline in this video, i will quickly be discussing the most recent news related to tesla's global expansion. I will be sharing what wall street analysts just increased their tesla stock price target by 100 and make sure you stick around because after all that i will be mapping out the key price levels that will give us a better indication of the next major movement in Tesla stock price, but before we get into all of that, if you enjoy this type of stock market content, don't forget to join the moon gang by hitting the subscribe button. My goal is to hit 10 000 subscribers by the end of january, and your help with that would be truly appreciated.

Also, if you want five free stocks, make sure you check out the links to both weeble and robinhood. In the description of this video, the promotional deal will be ending on january 15th and now without further ado, let's get started. I think it's necessary that i clarify an important distinction between investing and trading. If you happen to be a tesla investor, you should have a multi-year time frame.

Your biggest concern should be the health of the company and the growth of the ev sector, as electric vehicles become more and more popular. This will clearly benefit the leading ev company, which is tesla. You shouldn't be too concerned with the day-to-day action whether the stock has a small breakout or breakdown. Remember that you're betting on where tesla will be years down the road.

However, on the other hand, if you happen to be a tesla trader, the size of the ev sector, five years from now won't really have an impact on your position. You should be far more concerned with the most recent news updates and technical developments within the charts, whether you think that tesla will go up or down in the long run, doesn't really matter because it can do the exact opposite in the short term. My point in bringing this up is that you should know what you're doing before you create the position. If you're an investor, don't let a momentary decline, shake you out of the position.

That should only happen if something fundamentally changes that alters your opinion on the company. If you're a trader, whether you're price, targeted or your risk levels hit stick to your plan, you don't want to be too greedy and you don't want to let your losses get out of hand overall know what you're doing before you buy any shares. Not only does this apply to tesla, but it applies to every stock alrighty. Now it's time to get into the nuts and bolts of what's been going on with tesla.

It was just reported today that tesla gained an india business license. Tesla has officially received a business license in india, which will give the company the ability to operate as a domestic automaker as a subsidiary of a foreign company in late december, tesla had applied for several business licenses and, according to the ministry of corporate affairs, the indian Government has allocated space for tesla's initial operation in the country. Now i would argue that this is a piece of pretty bullish news for a few reasons. First, when they're talking about operation they're, referring to a new manufacturing plant, obviously with more manufacturing that will help tesla hit its higher and higher delivery goals.

Second, india is a pretty massive market. The demand for evs within the country really isn't known, but the country really does have an appetite for alternative energy. As of now, india is the biggest solar power country and third, i personally think that it helps lower tesla's overall risk right now they have a gigafactory in china, so if they end up building one in india, i think that could really help out, because the us Doesn't have as many geopolitical tensions with india as we do with china, so the stock market obviously likes what tesla's been doing and now more and more analysts do too credit. Suisse doubles.

Tesla price target to 800 credit suites, recently updated its outlook on tesla analyst dan levy doubled his price target from 400 to 800 dollars per share. The reason for such a big jump was that he liked that capacity expansion is at the core of 2021's priority list, allowing tesla to unlock further volume growth. He expects tesla to have installed a capacity of 1.44 million vehicles per year by the end of 2021.. This is a notable jump from the company's existing capacity of about 840 000 vehicles in 2020..

There is quite a bit more detail in this article, so if you want to check it out, definitely feel free, it can be found with a google search. But to sum all of it up, mr levy is now bullish on tesla because he really likes how the company is expanding and he believes that it will be able to take full advantage of the growing ev wave. Speaking of taking advantage of the situation, i quickly wanted to share this headline with you before we hop into the charts there's this guy jason debolt, who began buying tesla at 7.50 cents and now he's able to retire at the age of 39, because he's made 12 Million dollars, he also said that he does not plan on selling any shares for the foreseeable future. I don't know about you, but i think that this is pretty awesome now.

I know that most of us haven't made 12 million dollars, but i really hope that you were able to make some money off of tesla's incredible run on the screen. Now is tesla's daily chart, as you can see the stock closed out last year and started this year on a very nice 11 day, win streak that streak did come to an end yesterday, but as of today, tesla stock is back at it again by gaining 4.7 Percent, if you want to help tesla go higher, you can do so by dropping a like. It also really helps out this channel. Your support is truly appreciated.

Anyway, tesla is now trading, just below 850 dollars per share, and thus far in 2021. The stock has already gained more than 21 absolutely incredible. This is the current technical situation that tesla stock is in for those of you who are new to the channel. Here's a very quick recap of what's been going on.

The previous all-time high came at the start of september, and it was just above 500. We saw this right after the company's 5 for 1 stock split. Unfortunately, after hitting this now relative high, the stock did sell off and it eventually found support at 330 dollars from there. It bounced up and then came back down, and we saw the formation of this triangle, which is referred to as a bullish pennant.

It gets its name because it commonly breaks upward and that's exactly what we saw and this led to a double top rejection at 463 from there from mid-october. Until the start of november, the stock did sell off with the overall market and then in the first two weeks of november, there really wasn't much going on in tesla. This brings us to november 16th, which is one of the most important days in tesla's history. It was announced that the stock would be included in the s p 500 and it did cause a gap up, but it looked like it would be a triple top rejection at 460..

Obviously that was wrong because ever since then the stock has been on a rocket ship since the point of that announcement until now, tesla is up an incredible 110, let's zoom in a bit just to make this chart more readable. Now, besides the fact that this rally has been basically printing money for people, there are a few technical things that i would like to bring to your attention. Two days ago, tesla broke out and hit its current all-time high of 884. It turns out that this was a fake out breakout because the very next day tesla sold off and came very close to 800.

That brings us to today where the bull camp came back fighting and it ended up getting rejected right at this trend line failed bullish, breakouts are obviously bearish and now that's also aligning with bearish divergence in the rsi. What i mean by that is, if we take a look at the current all-time high compared to this high at 500, the stock has clearly gone up, but the rsi hasn't. We have a value now of 84 and before it was about 85. This is referred to as bearish divergence, because it means that there is less buying strength here than there was here, and it's commonly indicative of a future decline, or at least a period of consolidation.

Now to be perfectly clear. This in no way means that tesla stock has to drop. It just means that the ideal situation moving forward is not only for tesla to make a new all-time high, but we really needed to bring the rsi with it. So we can get above 85 to get rid of this bearish divergence to get a better idea of how tesla stock reacted to this exact same setup.

We really don't have to go that far back. It happened in december when we had these three higher highs, but the rsi was going lower and lower. This proves that a few days of consolidation is all that tesla needs before it can shoot to a new all-time high. Of course, though, the stock is already up.

100 from mid-november until now, so a pullback would be considered healthy. Basically, the main thing you have to watch is how the stock reacts to this trend line if tesla continually gets rejected at this trend line. That would then set up a test of the previous low of 800, and if the bear camp were to push the stock below that, that would then set up a test of this middle trend line. On the other hand, if the bear camp can't defend this trend line and the bulls push it higher, there will be resistance at the current all-time high of 884 past that there is an important fibonacci level right around 9.50 and of course past that we have the Very magical, key psychological level of one thousand dollars.

This is exactly why i said earlier in the video that tesla stock is at a very important point of inflection. It comes at this trend line and if the stock gets above it we will see a new all-time high, but if it doesn't there's a chance, we could fall back down to this middle trend line. I really wish that i could definitively tell you how this will play out, but i can't and in reality no one can, but we can get a better idea of what might happen by taking a look at the four hour chart before i hop into this time Frame i wanted to let you know that the name of this charting software is trading view and there's a link to it in the description of this video, okay back to tesla. So, from the point of the s, p 500 inclusion announcement up until the start of december.

The stock was in this upper channel, which is referred to as a bear flag and that's because it commonly breaks downward. In the end, that's what we saw with tesla and support was found at 540. from there. The bull camp tried to get back up into this channel on three separate occasions, and the third attempt marks an official rejection and the stock was knocked back down to 565..

Then from there the stock slowly grinded higher and we eventually saw a new relative high just below 700, and this came the day before tesla was put in the s p 500. This was pretty much expected because a lot of fund managers were essentially forced to buy shares of tesla as we fast forward until the end of the year and the start of the new year. Tesla had a nice double breakout. It got above both this trend line and the previous all-time high, and then it rallied all the way up to 884.

At this point, the rsi was very much in the overbought territory, which led to a sell-off and an eventual bounce at 800.. On this particular time frame, there is no bearish divergence in the rsi, which is a good thing, but if tesla were to go back higher, we would need the rsi to get above 89ish. So there is no bearish divergence on the flip side. If this most recent action marks more of a dead cat bounce, i would highly recommend paying attention to how the bulls react to the price level at 800..

From a technical perspective, i would agree that this chart is a bit blown out, but i also think that this bullish momentum and excitement is pretty much undeniable, which is exactly why i own two call options on tesla. The expiration date is january 22nd, and the strike price is all the way up at a thousand dollars. Now i in no way want you to copy this position because it is very risky. I just wanted to let you know that i am still bullish on tesla and i felt a bit more comfortable with taking this amount of risk because i'm invested in tesla at 400 dollars per share.

So i'm already up quite a bit on the position. My personal recommendation moving forward would be to pay close attention to see how tesla reacts to the support at 800 and then the resistance of the daily trend line around 8.75 and then the current all-time high of 884, depending on. If we have a breakout or breakdown you'll get a much better idea of the next major move in tesla stock. Personally, my long-term outlook on tesla is a bullish one, but over the next few days i think it's a pretty tough call, because of that i would love to get your feedback.

Do you think that the bull camp will win and we'll have a breakout, or do you think that the bear camp will succeed and we'll have a breakdown? Let me know in a comment below as a quick reminder: if you want five free stocks, make sure you check out the link to both weeble and robin hood in the description of this video, the promotional deal will be ending on january 15th. 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. All of your support is truly appreciated. Thanks for watching and until next time best of luck in the markets, you.