What is going on moon gang? I hope both you and your portfolio are having a great day. My name is matt, and in this video i will be discussing the chinese electric vehicle company neo. I will be covering some recent announcements and happenings that helped its stock hit a new all-time high. I will be doing a technical breakdown of its chart, so you know what to expect in the near future and at the end i will be sharing my opinions on.

If neo stock is a good investment or not before i dive into it, if you haven't already, you can join the moon gang by subscribing to the channel. I'm attempting to grow this channel to 5 000 subscribers by the end of this year and your help with that would be truly appreciated. The community is awesome and it's also absolutely free. So basically, it's a win-win talking with all of you has been great, so i would love to know your thoughts on neostock in a comment below.

Are you buying selling or holding, and if you're already invested? What is your price target now with that? Out of the way, let's get started, alrighty then so, for those of you who don't know, neo is another electric vehicle maker that is in direct competition with tesla neo has recently released its ec6 model and it's been selling in es8 and in es6, as you can Tell these vehicles are direct competitors to tesla's model y, but you should know that neo is much smaller than tesla at the time that i'm making this video neo has a market cap of roughly 22 billion dollars, while tesla is closer to 400 billion. Neo is based out of china, but it has recently announced plans to expand globally, starting with europe, to the delight of many investors, neostock held strong in the month of september, and it was even able to post a brand new all-time high at the end of the Month this happened after its stock surged because it was called the next iconic auto brand deutsche bank lifted its profit and sales forecast for the chinese electric car manufacturer neo, citing the company's promising move into the premium auto sector. Deutsche bank reiterated its buy rating and 24 target profit for neo shares. Neo may not have the intense following enjoyed by the industry leader tesla, but deutsche bank thinks that the electric car manufacturer can quickly dominate the expanding chinese market and that market is huge.

In fact, it's roughly three times larger than the us market analysts at deutsche bank believe neo could become the next iconic auto brand, citing neo's growth in the competitive electric vehicle market. The team projected record third and fourth quarter deliveries and raised its estimates for full year. Sales and earnings as adoption of battery powered electric vehicle increases and word of mouth spreads. We believe neil can take material share in the premium segment, as consumers begin to understand the value, proposition and quality of its products and services.

As i was researching this video, i realized that neo has huge brand recognition and loyalty in the entire country of china. This shouldn't be understated, because china represents a truly gigantic market share. Neo's average customer referral rate jumped to 62 in the first half of 2020 from 52 last year. Neo has a higher referral rating in china than tesla, bmw and mercedes-benz.

Despite being just six years, old, neo standing in the chinese market is already translating to more sales. The automaker boosted its monthly production capacity to 5000 in september after selling out vehicles produced in august third quarter. Deliveries are set to reach 11 500, which is above the high end of the company's own guidance. I found this pretty insightful quote from the analyst at deutsche bank edison.

U, we continue to see compelling evidence that neo is increasingly perceived by customers as a high quality premium brand, with best-in-class technology and service. As battery ev adoption increases and word of mouth spreads. We believe neo can take material share in the premium segment, so there you have it neo stock surged over the past couple days, because the bullish sentiment on wall street has been increasing. Uceti expects neo to officially unveil its all-electric sedan.

The ee7 later this year, with a revamped hardware, sensor suite that will enable level 4 autonomy by 2022. I would highly recommend paying attention to any reports related to these two things, because, if they're positive, i would expect a stock upswing in the near term. Deutsche bank expects record deliveries and margins in the third and fourth quarters, thanks to the newly launched ec6 suv, coupe 100 kilowatt hour battery pack option and battery as a service rollout. I do have more information on these last things.

For you, on september 25th, neo announced it had officially begun deliveries of the ec6, its five-seater premium, electric coupe suv, neo's ec6 comes in three editions, sporty performance and signature. The ec6 performance and signature versions come with either a standard 70 kilowatt hour battery pack, which has a range of 440 kilometers, which is roughly 273 miles and there's also an option 100 kilowatt hour battery pack with a range of 615 kilometers, which is roughly 382 miles. Neo's vehicles start at 368, 000 yuan, i'm probably butchering that. So i'm sorry, but it's roughly equivalent to 54 000 us dollars and their higher end models are 526 000 yuan, which is around 77 000 us dollars.

As you can see here, it's actually cheaper than tesla's vehicles and part of the reason of that is because of their battery as a surface model. I covered this in further detail in my previous neo video, but basically it's a subscription service for their batteries, which works hand in hand with their battery swap technology. This business model and swappable technology are actually very interesting and it's one thing that sets neo apart. So i would highly recommend reading more about it on their website.

Now, let's do a quick technical breakdown of neo neo's ticker is its own name nio and over the past one week it's up 18 over the past month, it's up 11 over the past three months. It's up 168 percent, and over the past six months year to date and one year, the numbers are even more incredible. Neil closed just above 21., which is a new high, and it also means that the only technical resistance above is the all-time high at 22.59. In terms of support, i would recommend first watching 20.92, where the stock was rejected twice and below that you could watch 1988, where the stock was also rejected twice and below that.

I would watch for his demand to be found at 1675 where the stock bounced here here and it was rejected here. If this surge doesn't hold, you could always watch how the stock reacts to this upward trend line. I'm pointing all these out because you shouldn't be investing at new all-time highs. You should buy as close to support as possible.

This will help you optimize your risk to reward. I also want to quickly point out something i noticed in the relative strength index also known as rsi. If you look at this bike and then where we are now you'll see that even though the stock made a new high, the rsi didn't, this is known as bearish divergence, and it means that less people are buying here than they did here now. This is no need to panic, but it's something you should be monitoring, especially as an investor, because it does have bearish connotations with that being said, if you have a longer time frame, you don't have to worry about this in the slightest, because it's more impactful to Swing traders, and regardless of what type of trader you are if you're curious, twenty four dollars would be a thirteen percent gain, which is the price target of the analysts at deutsche bank and thirty dollars would be a forty one percent gain, which is what i'm personally Targeting by the end of this year, all in all, i think that neostock is a pretty interesting play.

The company has superior brand recognition and loyalty, its sales are growing at an impressive rate and it seems to be offering a high quality product and, on top of all, that, neo is extremely well positioned in the massive chinese market. But it's still a speculative play. Neo is not profitable and it's a few years behind its competitors from a technology standpoint. Because of all this, i am bullish on neil, but i wouldn't make it a large part of my overall portfolio.

But with that in mind, i'm not a financial advisor. I'm just someone on youtube, and these are my personal opinions, so make sure to do your own research. I would love to know your thoughts on neostock in a comment below and also feel free to post any suggestions or recommendations for what you want me to cover. Next, if you're interested in the charting software, i use there's a link in the description of this video there's, also a link to smd trading, which is an awesome trading group.

I would highly recommend checking out if you enjoyed this video. Let me know by hitting the like button and if you want to join the moon gang subscribe to the channel and help me hit that goal of 5 000 subscribers thanks for watching and until next time. Best of luck in the markets. You.