What's going on moon gang, i hope you're having an awesome day. I also hope that your portfolio is doing well. Given today's market sell-off, my name is matt and in this video i will be doing a technical breakdown of tesla stock. I feel that this is important, because there is a scenario in which the stock could be crashing to 350 dollars in the near future.

Make sure you stick around until the end, because i'll also be going over a brief update on the overall market. But before i get into that, 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 if you could help out with that, that would be Truly appreciated also, it would be great if you could drop a like, because it really helps with getting this video in front of other people who might be interested and now with that out of the way, let's get started. The stock market just closed for the day and things were not pretty. The s p 500 is down 1.8 percent.

The nasdaq 100 is down 1.5, and even the ev sector took a hit. Workhorse was down, almost nine percent. Neo was down four point: two percent highly on is down six percent, but fortunately, tesla was essentially break even tesla stock, which trades under the ticker tsla is at 420, which means that the company has a market cap of 392 billion over the past week. Tesla is down 3.25, but from the start of 2020.

Until now, it's still up almost 400 percent, even though tesla stock has been selling off since the recent high on october 14th. It's only down two percent in the month of october, if you watched any of my previous tesla update videos, you'll be familiar with this wedge structure, then the breakout, then the eventual breakdown and now we're at this incredibly important support of 412. I'm saying that this price level is specifically important because it's where a lot of supply and demand has been found in the past over the past two trading days, the bull camp has been able to hold this line. Let's hope that that strength continues, because if the bears pushed the stock below the previous low of 405 and then the psychological level of 400, that would then open up a shot at the next support region between 359 and 350..

If enough demand isn't found between 400 and 412 from the most recent close, we could be looking at a decline of 17 if you're a tesla investor. This scenario is obviously not ideal, but i want to clarify. I am in no way calling for doomsday the bulls. Could definitely rally the stock from this support as they have before.

If today's action ends up marking the start of a bounce, the next resistance would come at 448, which would be a gain of almost 7. And after that we have 462, which would be a gain of 10 and then, if the bulls can push the stock. Above that, we would then open up a test of the all-time high at 502, which would be a gain of almost 20 percent. Whichever scenario ends up playing out, it's all going to come down to the bulls and bears fighting it out at 412..

I would highly recommend paying attention to this price level over the next few trading days in order to get a slightly different perspective on. What's going on, let's switch over to tesla's 4-hour chart once you include the pre and post-market training. A new wedge structure, as shown by these blue trend lines, becomes evident. Unfortunately, that structure recently had a breakdown.

I do admit. I thought there was a really good chance that tesla's stock would bounce off of the bottom end of this wedge and return to roughly 465. Clearly that didn't happen, though, considering where we are now, i'm hoping that this region of support holds. I think that there's a decent likelihood of that happening because it's where investors found value one two three four five times before you should definitely proceed with caution, because, as you can see, if the stock falls below this region, there isn't much in the way of it.

Falling all the way down to 359 or the previous low of 350.. Personally, i am a tesla investor, so i don't want this mini crash to happen for obvious reasons, but from a technical perspective, this breakdown is definitely bearish. So, let's keep our fingers crossed that it's a fake out and the bull camp is able to push the stock back up into this wedge in the near future. Keep in mind, though, this will be pretty difficult, almost going against the wind if the overall market continues to fall as it did today.

This is a look at the daily chart of the etf spy, which tracks the s p. 500. I made a more in-depth update. Video on this yesterday, so if you're interested in that i'll put a link in the description of this video, to sum it up.

Briefly, though, i spoke about how the bulls were able to stand their ground all of last training week at the support of 342. Unfortunately, that did not happen today. I also spoke about how there's potential for two different abcd patterns. The first is bearish with the a being here then b c and then d would be a new low below 319, but there is also potential for a bullish, a b, c d pattern.

If you think the overall uptrend of the s p 500 is more viable than this new lower high. The start of that pattern would be here and then the b pivot would be the most recent high. Your c would come somewhere in this region and your d would be a new all-time high above 358. from a technical perspective.

I think it's difficult to make an informed prediction at this point, because we have a handful of market moving events that will be announced in the near future. Personally i'll be paying attention to what the overall market does, because it tends to drag individual stocks with it. Whether that's upwards or downwards, as things continue to develop in the overall market and with tesla i'll, make sure to keep you updated in future. Videos.

Also, keeping you posted on 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 those videos moving forward, i'm hoping for the best but preparing for the worst tesla's next support is between 400 And 412 dollars, if the bull camp can't hold that the next support would be all the way down at 350. Obviously, i'm hoping that the scenario doesn't play out because i'm a tesla investor but as you'll quickly learn hope, isn't worth that much in the stock market, regardless i'm expecting a lot of volatility. Given all the earnings announcements, talks surrounding the next stimulus package and, of course, the presidential election, but with that being said, these are my own opinions and i'm not a financial advisor, so i definitely recommend doing your own research. I would love to know your thoughts on tesla stock in a comment below.

Do you think it will continue to fall or bounce from here? If you made it to this part of the video, you should know that your support truly means a lot to me. If you want to support my efforts and making more videos like this there's a few things you could do, you could drop a like leave a comment and join the moon game by hitting the subscribe button. All that engagement really helps with the youtube algorithm and as a quick side note, if you're interested in my charting software there's a link to a free 30-day trial in the description of this video and there's also a link to a phenomenal trading group called smd trading. I would highly recommend checking both out thanks for watching and until next time best of luck in the markets.

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