What's going on moon gang, i hope you're having an awesome day in this video, i will be talking about the fan favorite leading electric vehicle company, better known as tessa. I will be doing a technical breakdown of tesla's chart because i have a sneaky suspicion that a large move is on the horizon. I will be highlighting the carriers of support and resistance, so we are better prepared for whatever happens 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. 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 may be interested, and now that i got that out of the way, let's get started alrighty then the stock market has now closed.

For the day and things were not the best, the three major indices, the s - p, 500, nasdaq, 100 and russell 2000 all closed down. Which is why it's not that big of a surprise that tesla also closed down tesla trades under the ticker tsla and today it lost 1.29, which puts its stock at 412. Today's volume was a little light compared to the average volume over the past 10 days and at this price level, tesla has a market cap just under 400 billion dollars. Over the past week, tesla has lost six percent over the past month.

It's lost almost 11, but from the start of the year until now, it's up a very respectable 392 percent. If you've been keeping up with my tesla videos, you'll be familiar with this current technical situation. For those of you who are new to the channel. Here's a very brief recap from mid-august until september tesla had a stock rally and hit its new all-time high at 502, and this was because of the company's 5-1 stock split.

But when the split actually went through, there was a pretty brutal sell-off which led to a bounce and then another sell-off. So we had this pretty symmetric triangle. From there there was a bullish breakout which led to a double top rejection at 462, and then this was followed by a sell-off in the second half of october, which ended up being a decline of 16. In my personal opinion, this sell-off had a lot more to do with the virus and uncertainty surrounding the presidential election, rather than something negative going on specific to tesla.

In fact, its most recent earnings announcement was relatively bullish. Anyway, from this low, the stock was able to recapture the support at 412, and then it made its way up to 450, where it was rejected, and now the bulls and bears are once again battling it out at this incredibly important support of 412. from march. Until now, tesla has been consistently been putting in higher lows, which is definitely bullish, but it's having a very difficult time breaking above the resistance of 462..

It's also noteworthy to point out that all these pivots from high to low ping-ponging, back and forth have had smaller and smaller ranges in the world of stocks. Periods of consolidation are followed by expansion and that's exactly what we're seeing right now. Tesla stock is consolidating this bullish trend of higher lows makes me think that the stock will break upward, but, as a word of caution, the current pressure from the global market and global economy should not be understated if the bull camp ends up winning this fight. The next battle would be at the region of resistance between 450 and 462, which is exactly where tesla stock was rejected multiple times before to get here.

That would roughly be a gain of 11 and if the bulls pushed the stock above that, that would then set up a test of the all-time high at 502, which would be a gain of almost 22. But, on the other hand, if the bears end up winning this fight, the first area i would be watching would be the recent low of 380, which would be a decline of almost eight percent and at this price i would consider picking up a few more shares. But in all honesty, i'm really waiting to load up in the region of support between 350 and 360, which would roughly be a decline of 13.7 percent from mid-september. Until now, tesla has spent a high majority of the time in the 50 range between 412 and 462..

We basically have to wait for one of these regions to give way before the next big move and, as i said before, because these ranges are getting smaller and smaller. I think that big move is coming sooner rather than later. Before i switch over to the four hour chart, i want to quickly bring up the rsi, because a lot of you have been showing interest in it lately. Unfortunately, there's not much going on with the relative strength index for this indicator.

Values above 70 are considered to be overbought and below 30 are considered to be oversold. Currently, tesla has a reading of 47, so pretty much smack dab in the middle. To me, this is just one more sign that there's a lot of traders and investors waiting to see which way tesla stock breaks above the resistance or below the support. When you include pre and post market trading, you can get a slightly different.

Take on what's been going on right after the election in a very bullish fashion, tesla not only recaptured the support at 412, but it actually had a breakout above this trendline. Unfortunately, that was swiftly declined and now we're back at the support and the trend line right at 412.. The next few trading days should be pretty informative. If the stock is pushed above this trend line, then there's a pretty good shot.

We would be returning to at least 449, but if the stock fails at 412, that could then open up the doors to drop all the way to 380.. On more of a personal note, i am invested in tesla and my cost basis is exactly 400, which means that i'm slightly positive on the position. For my account, this is just a partial position, so as much as i want the stock to shoot straight to the moon, i would also really like the opportunity to buy some more. As i mentioned, i would consider picking up a few shares at the previous low of 380, but i'm really planning on loading up in this region of support, as always, as things continue to develop i'll make sure to keep you updated in future videos.

So make sure you have your notifications turned on and also keep you posted on when i invest in more shares of tesla. To sum things up in the short term, i can honestly see tesla stock going either way. So if you're a swing trader, i would recommend paying close attention to the levels of support and resistance, but for those of you who are investors with a longer time frame, i am still bullish on tesla tesla is the leading ev company and the sector as a Whole is set to do extremely well in the coming decade. I see no reason why tesla and its stock won't ride the wave with that being said, though, these are my own opinions, so make sure to do your own research.

I would love to know your thoughts on tesla stock in a comment below and more specifically at what price would you consider buying more thanks for watching to this point in the video? I truly hope that you found some value in it. If you want to support my efforts with this channel, it would be greatly appreciated if you could drop a like. And if you haven't already don't forget to join the moon game by hitting the subscribe button and if you're at all interested in the charting software that i use there's a link to a free 30-day trial. In the description of this video and as a quick side note, you may have noticed that i slightly changed my filming setup, so i'd love to get your feedback on it.

Thanks for watching and until next time best of luck in the markets, you.