What's going on moon gang, i hope that you're, having an awesome day in this video, i will be talking about neo. You know the fan favorite ev stock, that has huge growth potential. I will be covering a recent and pretty considerable price target upgrade from goldman sachs and then i will be doing a technical breakdown of the stock. So we know what to watch for in december, but before i get into all of that, if you're new to the channel don't forget to join the moon gang by hitting the subscribe button, i'm on my way to 10 000 subscribers and your help with that would Be truly appreciated 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 dive into it. On tuesday december 1st neostock received an upgrade at goldman sachs and here's the classic headline. In hindsight, we underestimated goldman sachs analysts flipped their stance on neo, saying that in hindsight they underestimated the benefits that the chinese electric vehicle maker would get from breakthroughs, such as its battery swap idea. The analysts upgraded neo from sell to hold and they raised their 12 month price target from 7.70 all the way up to 59.

You might be wondering what prompted such a jump, and the answer is that goldman loves neil's battery as a service program. This service allows users to purchase a new car without the battery, making it more price competitive against existing powered trains. For example, a comparable car would be tesla's model y, and that is roughly fifteen thousand dollars more. But the benefits of this bas model don't stop there.

Existing public charging stalls are often busy, but within ten minutes neocar owners can swap their depleted battery with a fully charged one, which is much more time efficient than the fast charger stall. That requires around two and a half hours. The analyst at goldman continued by saying, in addition battery as a service, also represents a systematic solution to the long existing challenges for ev penetration, including battery degradation battery upgradability and lower resale value. Now it's no secret that neo is a small ev company when compared to the likes of tesla.

But i really like its technological innovations, which is why i think there's so much interest in the company and its stock, speaking of which, let's switch over to the charts. When the market closed for the day, three of the major indices, the dow, the s - p, 500 and nasdaq 100 - were all pretty much flat on the day. But the same cannot be said about the ev sector. Highly on lordstown motors, tesla and workhorse were all down on the day, but do you know what was positive? Neo neostock was able to gain 5.8 percent, which puts it just under 48, and, what's even more impressive, is when you realize that neo opened the day up at 40 and rallied all the way up to 48, which was a gain of 19.5 percent.

Today's action was pretty heavy, the total volume of shares, traded was 307 million and its own 10 day average has been 224 million over the past week. Neo stock is down 11, but over the past month, it's up 43 and from the start of the year until right. Now, it's up over a thousand percent, absolutely incredible. If you've been keeping up to date with my neo videos, you'll be familiar with the current technical situation.

For those of you who are new to the channel, you should know that neostock started picking up momentum in june of this year for quite a while. It was following this blue trend line and then in mid-october, when the rest of the ev sector was struggling, neo had the small gap up and then posted a new relative high at 29, and once the trend line was reaffirmed, neostock absolutely exploded when citron came out With its short seller report on november 13th, there was a sell-off in neo stock, but it eventually rallied and it actually even hit its current all-time high of 57 dollars and 20 cents. Since then, the stock has dropped, but since this trendline bounce the stock is still up a pretty noteworthy 84. Now there are a couple things about the current situation that i would like to bring to your attention.

The first is this support at 38 today marks the fourth time that neil was able to bounce off of this price level. So it's clearly a strong support and if the stop were to ever return to it, it would most likely be a good investment opportunity and second is the rsi. This is the indicator that told us to not buy neo over the past three days when it was at the support of 49 and 45. What i'm talking about is bearish divergence.

If you look at this relative high on november 10th and then the all-time high you'll see that even though the stock continued going up the rsi didn't, this is referred to as bearish divergence and it commonly means that the stock's about to drop, or at least consolidate. Fortunately, for us, the rsi now has an opportunity to cool off. The stock was able to bounce off of the support at 38 and it smashed through the resistance turn support at 45, and it's now on its way up to the next resistance at 49.. Once neal breaks above this for the fourth time, the next stop would come at 54.20 and past that we have the all-time high just above 57., based on the most recent close.

Those would be gains of 3, 13 and 19. For those of you who are curious. Goldman sachs target of 59 would be a gain of 23 percent. As things currently stand, i do favor the bull camp over the bear camp.

I really like that the rsi is no longer in the overbought territory and on top of that, the bulls showed quite a bit of strength today to get a better idea of what might happen in the immediate future. Let's check out the four hour chart before i jump into this time frame for those of you who are interested. The name of this charting software is tradingview and there's a link to a free 30-day trial. In the description of this video, please feel free to check it out.

Anyway, from the end of october, up until november 13th, neo stock was caught in this bear flag. And then, when the citron report came out, this new triangle was formed and neil was able to find support at 45, and this was followed by a breakout and a rally to the current all-time high. But since then the stock has been selling off and once the rsi got very low support was found at 38 and the stock was able to bounce which brings us to right now moving forward. I would recommend paying attention to these levels of support and resistance, and looking for bullish or bearish diversions in the rsi, i do feel confident that we will see 54 before we see 38, because the rsi is relatively low and neo has a knack for outperforming the Rest of the ev sector - in fact, i feel so confident in this prediction that i decided to put my money where my mouth is and buy call options on neo.

The details of this play are on the screen. Now the strike price is 48 dollars. The expiration date is december 11, and the premium that i paid per contract was three dollars and 20 cents, 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 how this Options play works out so make sure you have. Your notifications turned on thanks for making it to this point in the video.

Your support truly means a lot to me as a quick reminder. Everything expressed in this video are my own opinions and i am not a financial advisor, so i would highly recommend that you do your own research. Also, don't forget that neo is a speculative play, so it carries quite a bit of risk with that being said, though, i would love to know your thoughts on neo in a comment below. Where do you see it going between now and the end of the year? If you're new to trading or if you're, just looking for a new trading, account, there's a link to the weeble trading platform in the description of this video, if you sign up and make a deposit of one hundred dollars, you'll be awarded four free stocks, which could Be valued up to thirty seven hundred, it's definitely worthwhile to check out 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 game by hitting the subscribe button.

All that engagement really helps me out. Thanks for watching and until next time best of luck in the markets, you.