What's going on moon gang, i hope you're having a great day. My name is matt and in this video i will be discussing the eevee trucking company hylion. If you're currently invested in highly on stock, there's a good chance. You've been asking yourself: how low can the stock possibly go? Now i don't have a crystal ball, so i can't tell you the future, but i can do a technical analysis of highly on stock, so you're better prepared for whatever happens next before we get started.

If you enjoyed this type of stock market content, you should consider joining the moon gang by subscribing to the channel. It is completely free and you'd, be helping me hit my goal of 5 000 subscribers by the end of this year. It would also be appreciated if you wouldn't mind, dropping a like i've been learning a lot from all of you, so i'd love to know your thoughts on hylian stock in a comment below now, with that out of the way, let's rock and roll as of friday October, 2nd the electric vehicle trucking company, hylion trades under the ticker h-y-l-it before that it was trading under shll, which is the symbol for tortoise acquisition. This is because hylion was a spack play or special acquisition.

In fact, hylion was the first major ev spack play since nicola, but, unlike nicola hylion actually has a product and its ceo, thomas healey, doesn't appear to be a complete fraud at the time that i'm making this video highly on stock is trading at 31, but it Definitely took an interesting path to get here. It all started in mid-june when the deal between tortoise acquisition and hylion was announced and the stock quickly ran 211 percent. This most likely happened for a couple reasons, and the first was excitement. Traders remember how far and fast nikola ran and hylion was similar in the sense that it was focusing on the same problem in the same industry, but its main differentiator was that it was using renewable natural gas instead of hydrogen fuel cells like nicola.

The second reason was that the more analysts and investors looked into hylion. It became apparent that they were offering a high quality product and they had an excellent leadership team, but the excitement was short-lived and the stock fell for pretty much all of july. From that initial high at one point, it was down 44 and from that low it ended up creating a base around 20, then on no big contracts, mergers or any other related announcements. The stock ran an incredible 180 percent after establishing a new high just below 60 dollars, the stock ping-ponged in between 53 down to 42 back up to 53, and then it had a noteworthy sell-off which brings us to today, and that was a decline of 42.

For those of you who are curious, this means that from the all-time high until now, highly on stock is down 47, which is definitely bearish territory, but that now brings us to the golden question. If you are an investor or are looking to become an investor, how low can highly on stock go? My first suggestion would be to watch this line just below 28. This has previously proven to be resistance on two separate occasions, and it's fairly common for previous resistance to turn into new support, in fact, depending on, if this holds or not, the stock may have already bounced off of this region. If the bull camp can't defend this line, i would then pay attention to how the stock reacts to the psychological level of 25.

Not only is this a key psychological level, but it was previously support and consolidation and, depending on how quickly things play out, it could align with this blue trend line. And then, if this line of support doesn't hold, i would pay attention to 20 dollars, which is where the stock previously found support in august. If i'm being honest, though, i think that there's a very low likelihood that the stock ever returns to this 20 area and there's a much greater chance of it bouncing off of 28 or 25.. My reasoning for this is twofold.

There is a lot of technical support in between 25 and 28 dollars, but for more of a fundamental perspective, not much has changed about hylion, it's not like, they lost a contract, a product was proven to be defective or the ceo was accused of being a fraud. This recent sell-off has a lot to do with trader psychology. Short-Term traders have been taking profits which drives the stock down, and then this is scaring investors who got in at too high of a price, so they cut their position, which creates a snowball effect. I do admit when highly on stock got above 45 50 and 55 dollars.

It did seem to be a bit overpriced because the company didn't really have the revenue to justify that value. But as i explained in my previous highly on video, which is on the top of the screen now, the company is said to have massive growth over the next decade. As you can see on the chart, the risk to reward profile is starting to strongly favor the bulls. The risk is relatively close by while there's a considerable amount of upside.

If this does end up officially marking a bounce and highly on stock, the bull camp should first target the previous support of 33 dollars and if they managed to push the stock above that the next resistance would come at 42, which would be a 36 percent gain. Then they could target 53.50, which would be a 72 percent gain and of course, above that we have the all-time high just below 59, which would be an incredible 90 gain. To put this in perspective about what i was talking about with risk to reward. The top of the support region would be a decline of 11 and the bottom of the support region would be a decline of 18.5 percent.

I personally think that the bull case is more likely because the stock is coming up on technical support. Nothing has fundamentally changed about hylion and take a look at the rsi. The rsi is showing that hyln is very oversold. In another sense, it means that the sellers are getting tired now, obviously the rsi macd and any of those other indicators aren't perfect.

But when you put this all together, i would strongly argue that the upside outweighs the downside, i'm not going to sugarcoat. It there's definitely risk in investing in hyaline, but you can minimize that risk by buying shares as close to support as possible and always sticking to your trading plan on the screen. Now is the four hour chart for harleon and, as you can see in this particular time frame, the rsi is even more oversold, which is indicative of a bounce. If you're a swing trader, you should definitely be examining multiple time frames, because you'll be able to pick up on different technical structures.

For example, on this 4-hour chart we can see that there is an additional resistance just below 42 dollars, which is exactly where the stock was recently rejected and had previously found support. Just before making this video, i bought shares of hylion, and my trading plan is pretty simple. I will keep the shares as long as this line in the sand at 28 holds, as things continue to develop i'll make sure to keep you updated with. What's going on technically, and also with what i'm doing with my shares of hylion, if you don't want to miss those videos, make sure you have your notifications turned on.

Hylion is definitely a speculative play, which means that this particular investment has a considerable amount of risk. If you don't feel like dealing with volatile swings in one direction or the other, this is not the stock for you. Now personally, i am bullish on hylion, but i view the company to be a long-term investment rather than a short-term swing trade over the next decade. I am willing to bet that hylion will be successful because it has an excellent leadership team and it's in a great industry.

But with that being said, these are just my personal thoughts and i'm not a financial advisor so make sure to do your own research. I would love to know your thoughts on highly on stock in a comment below and also feel free to post any suggestions or recommendations for what i should cover next, if you're interested in a free 30-day trial of my charting software, there's a link in the description Of this video, and if you enjoyed this video and you want to support my efforts in making them, there are a few things you could do to help me out. You could drop a like leave a comment and join the moon gang by subscribing to the channel. All that engagement really helps with the youtube algorithm and getting this video in front of other people and on more of a personal note, my entire goal is to provide as much value as i can.

So if you have any ideas for how these could be improved, feel free to, let me know thanks for watching and until next time best of luck in the markets.