What's going on moon gang, i hope that this video is finding you well today. I will be going over a pre-earnings announcement update for neo. I will be talking about this short seller report from citron what to expect from the upcoming earnings announcement and i will be doing a quick technical breakdown of neostock. So we know what price levels to watch moving forward, but before i jump into all that, if you're new to the channel don't forget to join the moon gang by hitting the subscribe button, i just hit 4 000 subscribers.

So i want to take a moment to say thank you. I truly appreciate all of your support 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 on friday, the 13th, the well-known short seller, citron research, came out with a bearish call on neo to the dismay of many investors.

This report caused the stock to tumble 14 andrew left of cichon research said in a short seller report that the ev company is poised to crash to 24, which would be a decline of 48 percent. Sichon research has made some impressive calls in the past so when they say something, people definitely listen. Left expects increased competition from tesla to prohibit growth for neo, as the made in china model y could be priced competitively relative to neo's offerings. More specifically, lyft is arguing that if tesla were to cut the cost of the model y by roughly fifteen thousand dollars, that could really hurt the momentum of neo.

He continued by saying that neo has found itself in uncharted territory that can never be justified by its current standing in the china ev market or its near-term prospects. As far as i can tell from the short report, his evidence for this is that relative to neo, tesla sold double the amount of electric vehicles in china in the month of october. Whether neo can hold on to and extend its gains in 2020 is likely to hinge on execution as it attempts to grow into its valuation. This last part is extremely important.

Many high-profile electric vehicle companies, including tesla, face years of investor skepticism, as it worked to ramp up production to meet soaring demand for its ever expanding lineup or in other words just because an eevee company's current deliveries doesn't really justify its stock. Price doesn't mean that it has to fall. I mean seriously. Over 20 billion dollars has been lost, betting against elon and tesla people are clearly investing in the potential rather than the current income statement, whether you're a neo investor looking to become one or absolutely hate.

The company, i would highly recommend that you check out this short report. It can easily be found with a google search collecting as much information as you can will always be a benefit. But please don't forget just because someone writes a short report or, let's say, makes a youtube. Video about that report doesn't mean that they're right now, let's switch gears to neo's upcoming q3 earnings announcement, which will take place after the market closes on tuesday november 17th.

As for wall street estimates, they are expecting a loss of 15 to 17 cents per share on a revenue of 628 to 655 million dollars. Neo has already disclosed that q3 delivery, surged 154 to 12 200 vehicles surpassing the high end of its own guidance in october alone, neo delivered 5 000 vehicles, which was more than doubled year over year. On top of that, in q3, neil began delivering the new, more affordable, ec6 electric crossover and launch its new battery as a service business beyond the raw numbers. There are three key things i will personally be paying attention to in the earnings announcement.

I'm interested in the new delivery guidance, the performance of the battery as a service, and i'm curious if they'll have any remarks about their expansion into europe short report or not. If neo happens to raise the bar on any of these things, i could easily see the stock continuing its run, speaking of which, let's check out the charts. The market has now closed for the day and across the board, things were pretty green following friday's sell-off. Neo was able to gain back 2.29 and is currently sitting at 45 as we head into tomorrow's earnings announcement.

Today's volume was pretty heavy, almost at 300 million shares. Clearly there is a lot of interest over the past week. Neo is up 2.7 over the past three months, it's up 216 percent and from the start of the year until now, it's up an incredible 1 000. For those of you keeping up with my neo videos, you will be familiar with these levels of support and resistance.

When the market opened today, neo actually gapped down to 41 dollars, but the bull camp was in control pretty much all day and pushed the stock up to 45, which was the previous high. Depending on how much excitement there is for this earnings announcement and how things play out after, if this trip upward were to continue, the next resistance would be at neo's all-time high of 54, which would be a gain of almost 19. However, if the bulls can't hold this line, the next support would be at the recent low of 38 dollars, which would be a decline of 16 if the bear camp shows some serious strength and pushes neo even lower. The next support isn't all the way till 29.

40, which is the relative high from mid october, this would be a drop of almost 36 percent. From a technical perspective, this chart is very bullish. Neo has consistently been putting in higher lows and higher highs and outperforming all other ev stocks within upcoming catalyst. I would personally be very worried if i had a short position, but to be completely fair.

Not everything going on right now is completely bullish. Let's take a look at the rsi. As you can see, the current value is in the overbought territory. Now this can continue for a while, but the last few times that this happened, a period of consolidation did follow.

Anyway, let's switch over to the 4-hour chart to get a more detailed view from the end of october. Until november 10th, neo was caught in this upward channel. This technical structure is referred to as a bear flag and that's because it commonly breaks downward, which is exactly what we saw, but then in a very bullish fashion. We saw a surge to above this top trend line after posting a new all-time high.

The citron report came out which prompted a sell-off. This brings us to now where we are seeing a slight recovery. I know that this drop was prompted by a specific event, but i still want to bring your attention to these three key points. As you can see, the stock was making a new high, but the rsi wasn't.

This is known as bearish divergence and it commonly means that a decline, or at least a period of consolidation, is about to ensue, especially when you pair it together with this bare flag. I'm in no way saying that this indicated a short seller report was about to come out. Instead, i'm saying that this technical situation indicated that the stock needed to take a breather sooner rather than later, in a certain way if you're in the bull camp. This is a very good thing, because now the stock has more room to run to a new all-time high, so i would be very excited for the upcoming earnings announcement on more of a personal note, i do not own any shares of new, but i definitely want To be invested, i just haven't found the right opportunity.

I was hoping that the stock would drop today to the previous support of 38, where i could pick up a few shares, but i was really looking to heavily invest in the low 30s, but obviously that didn't happen. The reason i was watching these two areas is because it's my personal trading style to invest at areas of support. I would never recommend buying shares at or close to the all-time high. Once again, that is my own trading style, so you should definitely do whatever works.

For you, but as things currently stand, it doesn't look like i'll be able to invest in neo until after the earnings announcement, as things continue to develop, both fundamentally and technically, with neo i'll make sure to keep you updated in future videos and also keep you posted On when i finally invest in the company so make sure you have your notifications turned on. To put it simply, i think that neo and its stock will do very well in the future, and that's because i think that the ev sector as a whole will continue to grow over the next decade. With that being said, though, neo is definitively a speculative play. This particular investment carries a lot of risk, so please plan accordingly.

Everything expressed in this video are my own opinions, so i would highly recommend that you do your own research. I would love to know your thoughts on neo and how things will play out with the short seller report and the upcoming earnings announcement. Let me know in a comment below thanks for making it to this point in the video. I truly appreciate your time.

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Let me know thanks for watching and until next time best of luck in the markets. You.