What's going on moon gang, i hope you're having a downright awesome day in this video. I will be talking about the red hot stock of the day. Tesla. I will be addressing the company's inclusion into the s p.

500. What that means for the stock and then at the end i will be doing a technical breakdown of tesla, so we know which levels of support and resistance to watch next. But before i get into all 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 your help with that would be truly appreciated. And as always, if you enjoyed this video, don't forget to drop a like, because it really helps with getting it in front of other people who may be interested, and now that i got that out of the way, let's get started alrighty.

Then there really isn't much to tesla being included in the s p 500, and i know no one likes videos that drag on so i'll make this as quick and concise as possible. Tesla stock jumps on carmaker's addition to the s p: 500 s p, dow jones indices, announced on monday november 16th that tesla will join the s p 500, effective prior to trading on monday december 21st. Upon entry, tesla is already one of the s p. 500's.

10. Most valuable companies and at the time that i'm making this video tesla, is actually the most valuable automaker in the entire world beyond being a very large company within the us, there are other prerequisites to be in the s p 500, such as consecutive quarterly profits. Tesla was snubbed in the last fiscal quarter, which was in september after it met the criteria to be included in the s p 500, but was not initially picked by the s p 500 index committee. Now this snub came as a surprise to many investors and analysts, because well tesla is tesla.

When you also consider the increase in competition within the ev sector, it helps to explain why the stock dropped 14 within the month of september being included in the s p. 500 is beneficial to a stock, because there are many money managers who run funds that track this index, so they're essentially forced to update their portfolio accordingly, or in other words the supply of tesla stock has remained constant, but the demand has gone up which forces the Stock price to increase now that we've covered what inclusion into the s p, 500 means and what it does to a stock. Let's switch over to tesla's chart when the market closed for the day on november 17th, two of the major indices, the s p 500 and nasdaq 100 each put in a red day, but the ev sector was on fire neil gained 2. I think a lot of people are waiting to see how the earnings announcement plays out lordstown motors gained 9.5 and workhorse hylion and tesla all gained roughly 8.

This gap from 408 to 460, which was a gain of almost 13, was prompted by tesla's addition into the s p 500. Unfortunately, there wasn't much follow through and the stock partially sold off. When the market closed, tesla was at 441 and the volume was pretty serious. The average volume over the past 10 days has been 28 million, but today's action was almost double that at 60 million at the current price level, tesla has a market cap of 418 billion dollars over the past week.

Tesla is up 7.6 percent over the past three months, it's up 17 and from the start of the year until right now, it is up 428 if you've been keeping up with my videos related to tesla you'll, be familiar with the current technical situation. For those of you who are new to the channel, welcome and here's a very brief recap from mid-august until september tesla stock rallied from 270 to the current all-time high of 502.. A lot of this was caused by the excitement surrounding the company's 541 stock split. But when the stock split actually went through, there was a sell-off which then led to ping-ponging back and forth, and somewhere in here was also when tesla was snubbed from the s p 500..

There was a bullish break from this triangle, which led to a double top at 462. Then there was a sell-off in the second half of october, which seemingly lasts forever and at one point, was down almost 16. In my opinion, a lot of this had to do with uncertainty surrounding rona and the presidential election, but from there there was a bullish surge which retook this area and then was rejected at 450 and forced back down to 412.. That then brings us to today where tesla was rejected for the third time at 462..

As things currently stand, i would argue that this chart is favoring the bulls from march. Until now, tesla has been putting in higher lows and from september. Until now, we've been putting in the same highs, i think it's just a matter of time before the bull camp pushes the stock above this region of resistance and then makes its way up to test the all-time high. Based on today's close to get back to that resistance of 462, that would be a gain of 4.5 percent, and if and when we go back to the all-time high of 502, that would be a gain of 13.5.

However, this situation may not play out immediately. There is a chance that the market may try to fill this gap to examine the level of supply in this untested region. This would involve a decline to 412, which would be a drop of 6.6 percent. If, for whatever reason the bulls don't catch tesla there, we would then be looking for the previous low of 380, which would be a decline of 14.

This is a long shot and there's a chance that tesla may never return to this region. But if the stock were to ever drop to between 350 and 360, that would be an excellent buying opportunity. Once again, though, tesla may never return to this area, let's quickly check out the rsi, there isn't a whole bunch going on with the relative strength index. Besides the fact that there is still room for tesla to run now, let's switch gears to the 4-hour chart to get a more detailed view when you include pre and post-market trading, you do get a slightly different technical structure, let's zoom in to get a better view.

This top trendline is what you get when you connect the all-time high from early september to the relative high in mid-october. As you can see, this bounce in early november ended up becoming a failed breakout attempt and the stock was forced to consolidate at 412, but now we're on breakout attempt number two or in other words the current situation in both the daily and four hour. Time frame is favoring the bull camp and i would actually take that one step further by saying, if tesla were to get above 462 there's an extremely good chance, we would be on our way to the all-time high of 502.. There's almost nothing in this entire region.

That will slow the momentum down on more of a personal note, i am invested in tesla and my cost basis is exactly 400 for all of november. I was looking for the opportunity to buy more shares at 380 and 355, but obviously that didn't happen, and now, with this newest development, i'm actually considering buying more shares of tesla upon this gap fill at 412.. Do you think that this specific addition to my portfolio is a smart move or a silly one feel free to? Let me know, 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 moving forward. I honestly believe that tesla stock will hit a new high sooner rather than later.

Tesla is the leading ev company, and the sector as a whole is prompting a lot of excitement at the moment. We just need to clear the resistance at 462. With that being said, though, these are my own opinions, so i would highly recommend that you do your own research. I would love to know your thoughts on tesla in a comment below how long do you think it will be before the stock hits a brand new all-time high thanks for watching to this point in the video, i really hope that you found some value in it.

As always, if you enjoyed it, 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 that engagement really helps me out. If you have any suggestions for what i should cover next feel free to, let me know thanks for watching and until next time best of luck in the markets. You.