What's going on moon gang, i hope you're having an awesome day, because i definitely am my portfolio was on fire and i was able to lock in some sizeable profits on a neo swing play in this video. I will be going over an updated technical breakdown on neo stock and then i will be sharing a full recap on how i was able to make more than 50 on my neoplay in just three trading days, but before i get into all that fun stuff. If you're new to the channel don't forget to join the moon gang by hitting the subscribe button, i'm getting very close to 5 000 subscribers and your help with hitting that milestone 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 rock and roll all right.

The stock market has now closed for the day and the ev sector as a whole performed incredibly well tesla gained 6.5 percent and was able to post a brand new all-time high right around 526 dollars highly on lordstown motors and workhorse all continued their recent rally and Gained seven point: five percent, eight percent and twelve percent respectively and the bellow the ball neil gained 12.5 percent and also posted a brand new all-time high at 55 dollars and 64 cents. When the dust settled on the day, the stock was slightly lower, which means that thus far in november neo is up a very noteworthy 81 percent. Today's volume of total shares traded was a little light compared to its own 10-day average, which i found to be surprising because it is common when you're at new highs, for people to both be taking profits and chase the recent surge anyway over the past week. Neo is up 21 over the past three months, it's up two hundred and ten percent, and over the past six months, it's up one thousand two hundred and thirty percent - absolutely incredible returns from june.

Until right now, neo stock has been on fire for the longest time. It was following this trend line and then in mid-october there was a breakout above the trend line and then once it was reaffirmed, neil got into its rocket ship hit the launch button, and ever since it's been shooting straight up to the moon, everything i'm seeing from A technical perspective on this chart is extremely bullish. Neo is in this pattern of posting a new high, then consolidating posting a new high consolidating and once again we have another new high. Now i would never recommend that you chase stocks like this.

Instead, i would argue that you should invest at key levels of support. As things currently stand, the closest support would be the recent high of 5420, which would be a drop of 2 percent below that we have 45, which would be a drop of 18 and past that we have 38, which would be a decline of 31. If i'm being honest, this last support is a bit of a long shot. So unless something drastic happens, i wouldn't wait around to start my position in neo at this price level in terms of resistance, there's currently nothing above neo.

So, from a theoretical perspective, the sky is the limit. In reality, though, we just need to wait for the chart to develop in this region, so we have a better idea of the levels of supply and demand. Personally, i will be paying close attention to see how neo reacts to 60, 75 and 100, and i will also be paying close attention to the rsi. More specifically, i will be looking for bearish divergence.

As of now, the stock has made a new high, but the rsi hasn't. This divergence is commonly indicative of an upcoming drop or at least period of consolidation. So what i'll be looking for is for this rally to continue in such a way that the rsi can break through the previous high of 83.. If you see this situation develop in which the stock continues pushing upward, but the rsi falls off, i would recommend proceeding with caution.

This is a telltale sign that the buyers are getting tired and you don't want to be stuck being the bag holder. Just something to consider now to get a slightly different, take on what's been going on. Let's switch over to the 4-hour chart here is a more detailed view that includes pre and post-market trading from the end of october, until mid-november neil was caught in this bear flag and that eventually broke down when the citron short seller report came out, which also formed This bullish pennant, as i've mentioned in my previous videos - i didn't exactly agree with the citron report and this was followed by neo's earnings announcement, which was pretty bullish and on top of that, neo was able to find support at 45. So when i put all that together, i was pretty confident in a continuation of this bullish run and in fact i was so confident that i put my money where my mouth is.

By buying some call options now i decided to use options instead of buying shares for two main reasons: number one. I don't like to invest near all-time highs. It's just one of my rules and this position was opened on the 19th and number two. I really like.

The risk to reward of the options that were available to me if things went south, i could have cut my losses somewhere between 45 and 43, but on the other hand, in terms of reward, i was looking at a new all-time high, which is exactly what happened Now this wasn't some random bet, it was actually very calculated. I was a big fan of what came out of the earnings announcement. I saw that the stock was starting to break out and, on top of that, the options contracts had a very favorable risk to reward. So when that many things align it's worthwhile to take a shot in my last neo video, i shared the exact details of when i opened this position just so.

You know that i'm not monday morning quarterbacking, but here's a really quick recap. They were call options with a strike price of 55 and an expiration of december 4th, and the premium was 2 dollars and 64 cents then fast forwarding to today right as the market was closing, i sold all those options for 4.50, which was a gain of roughly 70 percent now i do think that neil will continue pushing upwards, but i decided to lock in profits, because i had to consider things such as theta decay and dying volatility. These topics can get a little complex, but basically i would need neo to do even better. Tomorrow than it did today to get the same profit if you enjoy these type of trade recaps, make sure to let me know so.

I include them in future videos moving forward. I would recommend paying attention to the levels of support and resistance and watching for divergence in the rsi, as things continue to develop, both fundamentally and technically, with neo i'll make sure to keep you updated in future videos and as a quick side note. The name of the charting software that i use is trading view, there's a link to a free 30-day trial in the description of this video. If you sign up it's a great way to support this channel thanks for making it to this point in the video, i truly appreciate your support.

My entire goal with this channel is to provide as much value as i possibly can so feel, free to share any suggestions or recommendations for what you would like to see. Next and as a quick reminder, everything said 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. I would love to know your thoughts on neo in a comment below how high do you think the stock will continue to run and, as always, 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.