What's up moon gang, i hope you're having a good one in this video. I will be talking about why the recent pullback in neo stock represents a pretty great investment opportunity, i'll be discussing both short and long term catalyst and then i'll be doing a technical breakdown of neo stock i'll be mapping out the key price levels that will be In play over the next few trading days before we get into all that, though, if you enjoyed this type of content, it would be great if you could hit the subscribe button and drop a like all that support really helps this channel out and now without further Ado, let's get started so, to put it simply, i personally believe that neo is an excellent multi-year investment, because it is uniquely positioned to ride the ev wave, which will most likely get bigger and bigger for the remainder of the decade. In early 2020, neo looked like it wouldn't survive the year the company said there was substantial doubt in its ability to continue as a going concern. However, after turning things around posting, exceptional delivery numbers and earnings, the stock soared.

The author of this article, which can be found on investor place, has a price target of sixty dollars and an analyst at jp morgan. Nick lai has a price target of 40 dollars. A share now, personally, i believe both of these targets are a bit too conservative, but nick does bring up a pretty valid point. Ev penetration could quadruple by 2025, meaning that about 20 percent of all new cars sold in china would be battery powered now.

This is obviously good news for all ev companies, because rising tides raise all ships, but i do believe that neo will benefit the most because it has the best access to the massive market, which is china. When you consider neo's unique positioning and the rising demand for evs, i think there's a pretty strong argument to be made that neo stock will be trading much higher in 2025, relative to where it is now with. That being said, though, i also believe that there'll be a pretty notable bump in the stock's price in the near future. Neo day is set for january 9th, and you should definitely be prepared, because i'm expecting some pretty serious swings in the stock's price.

Neo is nicely set up for the new year with a delivery update due in early january, and then the annual neo day is scheduled for january 9th. The annual neo day event in the past has served as a platform for new product and service launches and catalyzed. Strong stock moves, so there are some pretty serious things to expect. Out of this event, new was on track to announce a few launches at the event, including the first sedan.

It is also believed that the company could start mass manufacturing the model by the fourth quarter of 2021.. Neo is expected to announce a 150 kilowatt hour battery back that will likely increase the range of its evs to over 900 kilometers, which is roughly 560 miles. An upgrade to neo's advanced driver assist system platform and the company will also announce its second gen battery swap stations. All of this is definitely technologically impressive and i'd be willing to wager that if neo can deliver on all these expectations, the stock will most likely rally with.

That being said, though, don't forget about the other important aspect of january the delivery report, as of now the magic number is 6654 vehicles for december, and if neil can hit that or even beat it, i would fully expect the stock to rally in the past when Neal was able to beat delivery expectations. The bull camp pushed the stop pretty high and i would in no way be surprised if that were to happen again so in early january, make sure you're paying attention to both the neo day event and the delivery report. But until then, let's check out the charts alrighty, my neo people when the stock market closed for the day, neil was up 4.7, which puts the stock just above 46 dollars from the start of the year. Until now, neostock is up an incredible 1045 percent and i think that number is about to get even bigger.

This is the current technical situation that neo is in for those of you who are new to the channel. Here's a quick recap of what's been going on. Neo came onto the scene in june of this year, and things got pretty exciting in october when the rest of the ev sector was struggling and really the overall market neo actually had a technical breakout. Above this trend line and hit a new relative high of 29, then once this trend line was reaffirmed, neo started to explode.

The first major red day came on november 13th, and this is when citron research came out with some bearish comments against neo. But i really wouldn't pay that too much attention because they are just party poopers, who also said negative things about tesla and nvidia, and look at how those two played out after this support was eventually found at 45 and from there we saw a rally to the Current all-time high, just above 57, after hitting this, there was a pretty brutal, sell-off all the way down to 38. So from that high, until support was found, it dropped 32 percent. We knew not to invest at these levels of support because there was pretty obvious bearish divergence in the rsi.

What i mean by that is, if you take a look at these three relative highs, you'll notice that, even though the stock went higher the rsi didn't this divergence means that the buyers are getting a bit exhausted and it commonly leads to a decline, or at least A period of consolidation and that's exactly what we saw in neo stock. Eventually, there was a failed bounce which led to an undershoot of the support at 38, which is definitely bullish, and then we saw a new relative high of 49 and the formation of this triangle, which is also referred to as a bullish pennant. As things currently stand, the closest three levels of resistance will come at 49, which would be filed by 54 and then the all-time high at 57 and in terms of support, i would recommend paying attention to 42, followed by this trend line and past that we would Have 38.: in my personal opinion, things are looking very and i mean very bullish for neo stock. First of all, from a high level view, there is a clear amount of momentum in neo and from more of a technical perspective, it has quite a few things going for it.

The name of this technical structure is a bullish pendant and that's because they commonly break upwards and the rsi is now relatively low compared to where it was so. It does have a decent amount of room to run, and, most recently, it found support at 42, which is where the stock bounced three times before. We also have a pretty close support nearby at this trend line and in the middle of those two. We also have the 50-day simple moving average, so basically, there will be quite a bit of demand in between 41 and 42.5 and this will most likely serve as a very solid foundation.

We also have a low rsi value, which means the stock has room to run, and this technical structure is called a bullish pendant and that's because it commonly breaks upward, then, as a cherry on top. We also have the catalyst event on january 9th, which is neo day. I think it's just a matter of time before neo stock is once again testing the all-time high of 57 and 20 cents to get a better idea of what might happen in between now and then, let's check out the four hour chart before i jump into this Time frame, i wanted to remind you that the name of this charting software is training view and if you want to try it out, there's a link to a free 30-day trial in the description of this video, okay back to neil so from late october. Up until mid-november, the stock was caught in this upward channel, which is referred to as a bear flag, and then, when citron came out with their bearish tweets, there was a breakdown which led to the formation of this triangle.

Eventually, support was found right around 45 and this led to a rally to the current all-time high just above 57. after posting, this all-time high neil quickly went into this downward channel, which is referred to as a bull flag, and when there was a breakout, the action Was kind of weird, because the stock then just followed this top trend line down to the undershoot of the support at 38.. After this early bounce, neil, then rallied up to the previous resistance of 49. before neo actually got there over my past two videos.

I mentioned that neil would most likely hit 49, but i also thought it would get rejected at that price level, because there was just too much supply in this region that did come to fruition, and then we saw a rejection all the way down to 42.50 moving Forward, i can see one of two things realistically happening scenario. Number one would be that neo makes its way up to this trend line, which leads to a breakout, and then we would have a test of 49 and past that we would then have a test of 54. scenario. Number two would be that neo makes its way up to this trend line and gets rejected and then forces either 45, 42 or 41 to be reaffirmed.

As i previously mentioned, there is quite a bit of demand in this area. So if this scenario were to play out - and one of these supports is reaffirmed - i would then expect a bullish breakout, which would lead to a test of 49 and past that we would have 54.. So, in my humble opinion, neo is due for a breakout and bullish rally. It's just a question of when, because this consolidation within the white triangle could play out for quite a while.

In fact, it is pretty interesting to note that the end of this triangle is relatively close to the catalyst event of neo day. Personally, i am not invested in neo and i'm very angry at myself for missing this opportunity. If scenario number one were to play out, i would just plan on buying a lot of call options, but if scenario two were to play out, i would finally be able to invest somewhere in this region. In the short term.

This would offer a great risk to reward setup and in the long term, i'm pretty confident that neo will be trading much higher relative to its current levels, as things continue to develop, both fundamentally and technically, with neo, we'll make sure to keep you updated in future. Videos and also keep you posted on if and most likely, when i buy shares of the company so make sure you have. Your notifications turned on feel free to share your thoughts on neil in a comment below. Do you think it's smart to invest at the current price level, or do you think that i'm missing something? Also as a quick side note, i'm considering starting a new series where i actively trade an account and share all the details with you? If that's something that you'd be interested in, let me know in a comment below if you enjoyed this video, don't forget to drop a like, and if you haven't already don't forget to join the moon gang by hitting the subscribe button.

All that support is truly appreciated. Also, if you're interested in free stocks make sure to check out the link to the weeble trading platform in the description of this video, if you sign up and make the appropriate initial deposit you'll be awarded four free stocks and the promotional deal runs the end of This month, thanks for watching and until next time best of luck in the markets, you.