What's going on moon gang, i hope that you're having an awesome day well, the time is here. It is the last full training week before tesla is added into the s p 500. In this video i will be covering what you should watch for as it relates to tesla, and after that i will be doing a technical breakdown of tesla stock. So we know what price levels to watch for the remainder of the week before i get into all.

That, though, don't forget about all that good youtube stuff. It would be great if you could drop a like and if you haven't already don't forget, to join the moon gang by hitting the subscribe button. All that support really helps this channel out and now without further ado. Let's get started.

Alrighty shares of tesla will join the s p 500 index on monday december 21st, and that is when funds index to the s p essentially start buying. That makes this week a big deal for the stock. For two reasons. For starters, this is the final week.

Traders have to position themselves ahead of index buying that might drive higher than average volatility. Second, friday's closing price will set the weighting of tesla, because the s p 500 is weighted by market capitalization. With adjustments for shares available for trading at current prices, tess will have a 1.5 weighting in the s p, 500, and for a bit of comparison, apple is around 5.8 waiting. The higher the price for tesla goes the larger the impact of any post indexation moves.

This is because fund managers have to decide when to add tesla stock and whether they will buy more or less than the index weighting. I want you to know that the bias for tesla stock this week is probably up, but it is hard to say how high it could go with that being said, i want you to proceed with a bit of caution, because this is a special situation. It is the most valuable stock ever to be added to the s p 500 and will likely have the largest waiting when added the options. Market implies that tesla stock will move about 22 percent up or down between now and mid-january, to get a better idea of what price levels we should be watching between now and then, let's check out the charts when the market closed for the day, tesla gained almost 5, which puts the stock at 639.

Today's action was pretty much in line with its own 10-day average and at the current price level. That means that tesla has a market cap over 600 billion dollars over the past week. Tesla is essentially flat, but all the other major time frames are in the green from the start of the year until right now, tesla has gained a very impressive 664. This is the current technical situation that tesla stock is in for those of you who are new to the channel from mid august until the start of september tesla stock rallied up to its last relative high at 502, and this mainly happened because of the excitement surrounding The company's five for one stock split, however, when the stock split actually went through, there was a sell-off from 502 all the way down to 331, and then it ended up ping-ponging back and forth and formed this bullish pennant.

This was followed by a breakout and a double top at 462, and then there was a sell-off as we went into november from there. The stock did bounce a bit and was rejected around 450 and a new support was found at 400. from march until november. Tesla stock was in a bullish pattern of consistently posting higher lows, and then things got very bullish when it was announced that tesla stock would be included in the s p 500.

This led to this gap up and at first it looked like there would be a triple top rejection around 460, but this was a fake out and the stock exploded all the way up to the current all-time high of 654.. From the moment that it was announced that tesla would be included in the s p 500, the stock has gained 57 percent. Most recently, there was some bearish divergence in the rsi. This means that, even though the stock made a new relative high, the rsi didn't and it's commonly followed by a period of consolidation or decline.

And that's exactly what we've seen over the past three days and now that the rsi has had a chance to cool off a bit. It does look as if tesla wants to make a new all-time high above 654., if and most likely, when tesla makes a new all-time high, we'll have to let price discovery play itself out, so we can better understand the new pockets of supply and demand. However, just so i don't come off as completely biased. You should also be aware of the closest levels of support from the most recent.

Close support can be found at the last relative high of 608, which would be a drop of 5 past that we have the most recent relative low of 567, which could also align with this trend line depending on if and how quickly it plays out. This would be a drop of 11 and past that we have 541, which would be a decline of 15. As a quick side note, even though i think the chances of tesla returning to the 500 price level are very low, if that were to happen, i would personally view it as an excellent investment opportunity now to get a better idea of where tesla might go between Now and its induction into the s p 500, let's check out, what's going on in the four hour chart before we hop into this time frame, i wanted to quickly mention that the name of this charting software is trainview and for those of you who are interested, There's link to a free 30-day trial in the description of this video anyway, back to tesla, when it was announced that this stock would be included in the s p, 500 from mid-november up until the start of december, tesla was caught in this upward channel, which is Also referred to as a bear flag, as its name suggests, there was eventually a breakdown and a new support was found at 541 from there on three separate occasions. Tesla was rejected from getting back into this channel and we also saw the formation of bearish divergence in the rsi.

The rsi value was lower, but the stock made a new relative high. This eventually led to a sell-off and now the new consolidation that we've been seeing over the past three days moving forward. I am looking for tesla to make a new all-time high above 654, but along with that, i'm looking for the rsi to go above the previous high of 77, and that would help us avoid a new case of bearish divergence. With that being said, though, obviously anything can happen in the stock market, especially when the volatility is high, which is exactly what we're going to experience over the next week.

If tesla ends up dropping, i would recommend watching the levels of support at 607, which would be followed by 560 and past that we have 540.. Personally, i am invested in tesla. My cost basis is 400, which is probably why i don't feel much pressure to buy more shares close to all-time highs, especially as we're heading into a binary event. No matter how the s p 500 inclusion plays out, i will view it as a win-win if the stock shoots up that's great, because it's a bigger percentage gain for me.

But if it drops, i would love to buy more shares of tesla between 500 and 540, and that's because i truly believe in the future of this company and its stock. Tesla is the leading ev play, and i strongly believe that the sector as a whole will explode over the next decade 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. I would love to know your thoughts on tesla in a comment below more specifically.

What do you think will happen to the stocks price when it's finally included in the s p 500 on monday december 21st, and if you have any questions, feel free to post those as well and i'll make sure to answer all of them? 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 game by hitting the subscribe button. All that support really helps this channel out and, as a quick reminder, don't forget to check out the link to the weeble training platform in the description of this video. If you sign up and make the appropriate initial deposit you'll be awarded with free stocks. So it's definitely worthwhile to check out thanks for watching and until next time best of luck in the markets.

You.