What's going on moon gang, let's talk about tesla, my name is matt, and this channel is all about stocks trading and investing. This video will be a quick tesla update first i'll, be going over the very bullish upgrade that the stock just received and then i'll be doing a technical breakdown of tesla. So we have a better idea of how things could play out as we're heading into the upcoming earnings announcement before i get into all that, though, don't forget about all that good youtube stuff. If you want to join the moon gang, all you have to do is hit the subscribe button.

Also, if you want free stocks, make sure to check out the links to both robinhood and weeble in the description of this video and now without further ado, let's rock and roll well, the tesla bulls are back at it again. Tesla stock rises, as price target tops. One thousand dollars at oppenheimer there's a new most bullish analyst on tesla and his name is colin roush. I hope i'm saying that right.

He has more than doubled his price target on tesla from 486 all the way up to 1036.. He said that the valuation supporting his new price target is based on high growth, equities, enjoying multiple expansion, as investors engage in price discovery related to inflationary pressures from stimulus measures. He also really likes tesla's efforts in simplifying manufacturing. He said they have seen significant success and will continue, especially with volume scaling now.

This is great. I really like how more and more people on wall street are finally coming around to tesla, but i don't know if calling him the most bullish analyst is actually accurate. Before tesla went through that 5 for 1 stock split kathy wood who runs arkhanvest was calling for tesla to hit seven thousand dollars. So if you take that math into account, that would now translate to 1400 per share.

So i don't know why they're calling this guy at oppenheimer, the most bullish - maybe it's because that's his one year target while arkhamvest is looking for tesla to hit 1400 by 2024, but whatever it is. There are some very bullish people out there when it comes to tesla. Just so you know, i have been getting some comments about arkhamvest selling tesla right now it is their biggest investment in the rq etf. But right now, as you can see it's over 11.5 percent and keep in mind that when they're running these funds they do have to have some sort of risk management and she's come out saying that she has to keep it pretty close to 10 percent.

So, as tesla's value continues to rise, they do have to sell some off and that's just for basic risk management before we jump into the technical analysis. I want to take a quick moment to address a comment from a previous video k. Young said tesla is a very aggressive stock, not suitable for all investors. I have to admit i fully agree with this comment.

Yes, tesla has had downright amazing returns, but the stock also comes with some pretty serious volatility when it comes to trading or investing. You should not only consider your own financial situation, but you also have to consider your own personality when i say that i mean it in the sense of what size of a drawdown. Can you reasonably stomach? For example, my long-term outlook on tesla is a very bullish. One, i am more than happy to hold all of my tesla shares for years to come and any momentary drawdown won't really bother me.

But that's just for me and my own personality make sure that you're playing the stock market in a way that best suits your own style alrighty. When the stock market closed for the day, tesla was slightly in the red and the stock is currently trading at 845 dollars. Thus far in 2021, it is up 19, which is pretty solid beings, we're only a couple weeks into the year, and this is the current technical situation that tesla stock is in. As a quick reminder, the name of this charting software is trainingview and if you want to try it out, there's link to a free trial in the description of this video for those of you who are new to the channel, let me quickly explain what i just Added these white lines are the trend lines that the stock seems to be following.

These yellow lines are technical levels of support and resistance, as in areas that the stock has bounced off of or been rejected by and on the bottom. Here we have the rsi indicator which stands for relative strength index and it basically maps bullish momentum against bearish momentum when it gets very high, that's a lot of bullish momentum and when it gets very low, that's a lot of bearish momentum. If we go back to mid-november, tesla was trading in this upward channel, which is referred to as a bear flag and that's just because they commonly break downwards. Tesla did do that, but support was found pretty quickly at five hundred and forty dollars and the bull camp regain control and on three separate occasions.

They try to get the stock back into this channel, but the third attempt was an official rejection and they knocked tesla back down to 566 and it is worthwhile to point out that this was a new higher low, which is overall, a bullish trend from there tesla. Slowly, grinded higher it did make a new spike, and that was the day before tesla was put into the s p 500 and then, when it was finally put into the s p 500. We had two red days, but tesla overall continued to grind higher, and then we had a nice breakout of not only this trend line but the key psychological level of 700 and then very quickly since then, tesla shot all the way up to 885.. Let me zoom in just a bit, so we can better see this.

You know you're having a crazy rally when you can barely fit the stock on your screen. After hitting 885 tesla did sell off it found support at 800, and i would also like to point out how this current all-time high was also associated with a spike in the rsi. So it's really not that uncommon that the stock and the rsi needed to take a bit of a breather, like i said, support was found at 800. It bounced back up to 568, which gave us the formation of this triangle in the world of technical analysis.

We call this a bullish, pendant and i don't want you to get worried about the name. Basically, all it means is that the stock typically breaks upward tesla did do that, but for the third time it was rejected at 860, which then knocked it down to this bottom trendline. Since then, the stock did bounce and, as you can see, there's very much been a huge battle going on at the 860 dollar price level. We have one two three, four five different rejections at that price level alone.

I think now is a very good time to talk about a key concept in the world of trading stocks, very commonly go from periods of consolidation to expansion back to consolidation. You can see that right here in tesla it was consolidating it expanded and once again we are in a period of consolidation. Eventually, this phase will end and we'll see another big expansion in tesla. But the golden question is: what direction will that expansion be? Will the bull camp end up winning or will the bear camp? In my opinion, it comes down to these two price levels.

We have support at 8 32, which roughly aligns with this trend line and on the top side we have that resistance at 860.. If the boat camp can get the stock above 860, i would then be looking for a test of 885 and past that we would have new all-time highs and if the bear cam pushes the stock below 832, i would maybe look for a support at 820, but Really, i would be looking for a major support to be found once again at 800.. As of now, the rsi is pretty neutral, so that isn't giving us much information. But it is also worthwhile to point out that the company does have an upcoming catalyst, which is their q4 earnings report, which will be on january 27th.

In the past, tesla's earnings reports have served as a big catalyst for both upward and downward swings. So i would highly recommend that you mark your calendar because there's a good chance that tesla could slowly drift one way and then, following this earnings announcement, we could either see a big spike or big decline. In my personal opinion, i do believe that the bull camp can win, because i'm really starting to question: how much longer can the bears really defend 860, i'm looking for maybe a small drift upward and then following a positive earnings announcement. It would be nice to see a massive spike, but obviously i can't guarantee that this will play out and neither can anyone else on this planet.

So please make sure that you're also watching these levels of support at 832, 820 and 800.. As i was alluding to before, these technical structures and price levels are much more important to you if you're a day, trader or swing trader. But if you happen to be a tesla investor, you should be far more concerned with where tesla will be as a company years down the road and it won't really much matter what the stock does over the next couple weeks feel free to post your price predictions On tesla, in a comment below also, i am curious. How do you think that the stock will react to the upcoming earnings announcement as a quick reminder, if you want free stocks, make sure to check out those links to weeble and robinhood? In the description of this video, and if you enjoyed this video, it would be much appreciated if you could drop a like if you haven't already.

You can also join the moongig by hitting the subscribe button thanks for watching and until next time. Best of luck in the markets, you.