What's going on moon gang, my name is matt and on this channel we share thoughts, suggestions and insights on how to take your stock portfolio to the next level. In this video i will be doing a technical breakdown of neo. For those of you who don't know, neo is a chinese electric vehicle company and it also happens to be the best performing eevee stock in the month of october. But before i dive into that, if you're new to the channel don't forget to join the moon game by hitting the subscribe button, i'm attempting to hit 5 000 subscribers by the end of this year and your help with that would be truly appreciated.

Also, if you enjoyed this type of content, it would be great if you could drop a like, because it really helps with getting this video recommended to other people who may be interested and now with that out of the way, let's get started alrighty then i know No one likes videos that ramble on so i'll do my best to be as concise as possible. The market just closed for the day and neo which trades under the ticker, and i o ended the day at 27.86, which means it was down 0.36. As you can see here, the action was actually a little light. Today, the total volume of shares traded was 62 million and the average volume over the past 10 days has been 142 million at these current prices.

Neo's market cap is 30 billion dollars and, to give you a little bit of perspective, neo's competitor tesla has a market cap. Just underneath 400 billion from 2016 to 2019 neo has not been profitable last calendar year. It actually lost 1.65 billion dollars and the story hasn't changed much in 2020.. In the first quarter it lost almost 250 million dollars and last quarter it lost 170 million.

But this doesn't seem to be deterring investors. In fact, over the past week, it's up 5.8 over the past month, it's up 46 over the past three months, it's up 130 and over the past six months. It's up an incredible 816, and, what's really incredible, is that neo has been on a terrace since mid march. Just eight months ago it was trading around two dollars and now it's trading at 27, which means it's gained over a thousand percent to get a better idea of what's been going on recently, let's zoom in a bit and also turn on the technicals.

As you can see here, neo has been doing extremely well in the month of october and in fact, it's up 31, which is way better than workhorse and hylion, which seemed to be falling off a cliff and tesla, which is essentially break even a lot of this Gain started on october 13th, when it was announced that jp morgan had a price target of 40 and citibank had a price target of 33. In a single day, neo was able to rally 22 as things currently stand on the daily time frame. The first resistance is the all-time high and, from the most recent close, that would be a gain of five percent, and the first support is this top trend line, which would roughly be a decline of 14 moving forward. I believe that neo stock will have a period of consolidation before another bullish surge upward.

As you can see here, the last three stock run-ups, which were also associated with spikes in the rsi, were promptly followed by periods of sideways action. Because of this, i think that there's a decent chance neil may want to consolidate in between 25 and 27 before it makes another run and post a new high. I'm currently not invested in neo and i'm not going to hop on the bandwagon quite yet, because the risk is a little bit too far away from my trading style. If you're like me and you want to invest in neo, but you don't have any shares yet.

I believe that the best play is to have some patience and weight, wait for the stock to break in one direction or the other, because you don't want to buy this far away from support to clarify, though, if the stock does drop two or below 25 dollars. I would in no way be worried if 15 or 20 decline is nothing when you realize that it's up over 800 percent in the past six months, i'm viewing any decent sized dip. That's close to support as an excellent buying opportunity, because i truly believe that this stock will be able to make us all a lot of money. I mean just consider the fact that, from the most recent close citibank is calling for 33 dollars over the next year, which would be a gain of 19.

Jp morgan is calling for 40, which would be a gain of 43 and personally, i would take this one step further and i have no problem believing that neo could hit 50 in the year 2021. I know that's a bit of a longer term prediction so to get a better idea of what could happen in the immediate future. Let's switch over to the four hour chart for pretty much all of september. Neil's stock was caught in between 17.21 and then, when october rolled around, it was range bound again in between 21 and 22.5, then jp came out with their very bullish price target of 40, which caused this upswing, and then the stock cooled off a little bit, which Brings us to where we are now.

I wanted to bring this time frame to your attention because if you absolutely feel like you need to be invested in neo and do it soon, there is a little bit of support at 27, which is where the stock caught itself on three occasions now. This isn't an incredibly strong support, so if the stock slices through this, i would recommend cutting your shares very quickly and then maybe trying again at the psychological level of twenty five dollars. Personally, i have a buy order sitting at twenty three dollars, but in all reality i don't think it will be filled and i think, there's a better chance of a new support being created somewhere in this region. If you're already a neo investor, you deserve a pat on the back, because it really looks like this stock is gearing up to run straight to the moon.

And if you're like me and you're, looking to hop on the train, have some patience and wait for the perfect opportunity to strike, as things continue to develop, both fundamentally and technically i'll, make sure to keep you updated and also keep you posted on when i finally Buy shares of neo if you're interested in that make sure you have your notifications turned on, so you don't miss any of my future videos. To put it simply, neostock has been absolutely killing it lately. Fundamentally, the company is growing at a very impressive rate and on top of that, the ev sector as a whole is poised to explode in the coming years and from a technical perspective, the charts are telling me that the stock has even more room to run. In my opinion, neo has a very bright future, especially when you consider how well positioned it is in the massive chinese market, but as a word of caution, the company has yet been able to produce a profit, so you should consider it to be a speculative play.

This particular investment comes with a large amount of risk. With that being said, these are my own opinions and i'm not a financial advisor, so make sure to do your own research. I would love to know your opinions on neostock in a comment below. Are you buying selling or holding, and what are your price targets? As a quick side note, my entire goal with this channel is to provide as much value as i can and cultivate an awesome community.

So if you have any suggestions on how i can make these videos better feel free to, let me know if you're interested in my charting software there's a link to a free 30-day trial in the description below and there's also links to the trading platforms. Robinhood and weibo, if you sign up and make the appropriate deposit, we both get free stocks. If you enjoyed this video - and you want to support my efforts in making more there's a few things, you could do to help me out, you could drop a like leave. A comment and join the moon game by hitting the subscribe button, thanks for watching and until next time best of luck in the markets.