What's going on moon gang, i hope you're having an absolutely terrific day. My name is matt and in this video i will be discussing neo the most exciting ev play over the past month. I will be explaining how neo stock could very realistically be hitting 100 before we know it. I will also be doing a technical breakdown of its stock, so we have a better idea of what to watch for in the immediate future.

But before i get into all that, if you're new to the channel don't forget to join the moon gang by hitting the subscribe button, i'm working to hit 5 000 subscribers by the end of this year and your help with that would be truly appreciated. Also, it would be great if you could drop a like, because it really helps with getting this video in front of other traders and investors who may be interested and now with that out of the way, let's get started. Alrighty then, i'm assuming, if you're watching this video you most likely know that neo stock has been running straight to the moon recently, and i have some even better news for you. Neil stock can go higher if growth continues.

Neo stock can be more than three times its present price if growth rate continues and just for a little bit of reference when this article was written, neo is trading in the low 30s neo, a chinese company that does not have to follow scc. Quarterly reporting rules will report its earnings on november 17th. However, the company recently provided an update on its october delivery performance and that's exactly why the stock has been running. In early november, neil reported on november, 2nd that it had delivered 5 000 electric vehicles, which was up 100 over the amount last year and year-to-date.

It has delivered 31 000 evs up 111. If you extrapolate this growth forward at this pace, neil could deliver 5750 in november and 6 6540 in december. So what does this mean for neo, taking into account the q2 earnings report and the recent growth rate? The author of this article is expecting neo to produce just under 44 000 evs in 2020, with a total revenue of 2.1 billion dollars. His forecasts for 2021 show that revenue is set to explode after adjusting the monthly average delivery.

Growth he's expecting 52 growth quarter over quarter, and here you can get a graphical representation of the impressive leaps he's expecting neo to take from the first quarter to the last quarter, he's expecting quite a bit of growth, which explains his prediction of 11 billion dollars in Revenue compared to 2.1 for the year 2020., when you take these revenue projections and then use tesla as a benchmark. You get some pretty interesting outcomes by the end of 2021. It is forecasted that neil will produce about 44 percent of cars that tesla will produce this year. Its revenue could be 11 billion or 36 percent of tesla's revenue.

As a result, it is likely that the market might push neo stock up to 36 percent or more of tesla's present market value that works out to 132 billion dollars. Therefore, assuming no more capital raises and not taking into account profitability differences, neo stock will be worth 3.17 times more or 105 dollars per share. If you're a neo investor, this news is obviously very exciting. I just covered the key details in this article, so i would highly recommend checking it out yourself.

It can be found with a simple google search. The golden question now is: will neil be able to sustain this growth? To put it simply, i think that the answer is yes and that's for two main reasons. First, neo is extremely well positioned in the massive chinese market and second, it's looking to grow even further. Numerous media outlets are reporting that neo is firming up plans to enter the european market in 2021.

One such report stated that the company has already set up the business unit to spearhead that effort. Some rumors have it that neo's european team will initially be headquartered in copenhagen. Under a project codenamed marco polo, pretty cool name, the article stated neo has picked up numerous employees to staff the unit. The ambitious car maker plans to sell seven thousand of its es-8 and es6 suvs in europe within two years.

So this is how i'm seeing things the ev sector as a whole appears to be primed up to explode over the coming decade and more specific to neil. It's offering a desirable product and has a solid management team, so i see no reason why neo couldn't ride the overall wave. I know the price target of 100 may seem lofty now, but i truly think that, given enough time this will actually be cheap. When the stock market closed.

For the day it seemed like everything was green, the s p, 500, the nasdaq 100 and the russell 2000 were all by 2 and the eevee sector killed it. Workhorse was up, eleven percent, tesla was up, four percent, hylion was up almost twelve percent. Lord sao motors was up. Seven percent and neo ended the day up twelve point three percent, which puts its stock at forty two dollars and if you believe the article i just covered, that means there's still sixty dollars worth of upside over the coming year.

I mean seriously take a look at this chart since the end of october. It seems like neo only knows how to put in new highs, and people are absolutely loving it. Today's volume was 291 million shares and the average volume over the past 10 days has only been 172 million and at this price level, that means that neil currently has a market cap of 41 billion dollars and not much is different here over the past week. Neil is up 26 over the past month, it's up 87 and from the start of the year.

Until now, it's up 903 percent. Clearly, neo is on a one-way rocket ship if you've been keeping up to date with my previous neo videos. You'll be familiar with this technical analysis. From this recent trendline bounce neo stock has managed to rally 63 percent from a technical perspective.

It's difficult to pick out levels of resistance at all-time highs, but i do want to bring to your attention the rsi, which is getting pretty oversold. This isn't saying that the stock has to come down, but the last two times the rsi got this high. The stock did come down a little bit to consolidate at the time that i'm making this video, i don't own any shares of neo. One of my recent neo videos was made right around this high, and i explained in that video that i was looking to invest in the company somewhere between 22 and 24, but that never came so.

I've been sitting on my hands and this rocket ship left without me. I am still looking to invest in this ev company. It's just a question of when this stock could continue to run, but i think there's a very good chance that at some point in the future, it will be cheaper than 42. One of my personal trading rules is to not invest at all-time highs, and i prefer to create my positions around levels of support based on the most recent close.

The closest support would be the recent high of 2940, and that would be a decline of 31 percent. So there is a chance that the stock never returns to this level, because that would be quite a drop for me and also possibly for you. If you also miss this ride, the best opportunity would be if a new support gets created in this region, as the chart continues to develop. I think that this may happen sooner rather than later and to better explain why.

I think that let me switch over to the four hour chart. We have two major things going on on this time. Frame number one is that the rsi is above 70, which means that the stock is overbought and number two. We have this upward channel, which is referred to as a bear flag and that's because they commonly break downwards.

So when you put these two things together, it's telling me that there's a pretty good chance that the stock may come down and consolidate before its next rip. Up, unfortunately, even on this time frame, the closest support is still pretty far away. I would be looking at 32, which is where the stock caught itself and was also rejected and below that we still have the previous high of 29.40. I would consider buying some shares around 32, but if the opportunity presents itself, i would heavily invest at 29.40 in an ideal world.

This would happen before november 17th, which is neo's next earnings report. It would be great if the stock could come down in this region because it would invalidate this bearish structure and it would also give the rsi a chance to cool off and that's exactly where i would jump in. And hopefully it happens before the next earnings announcement. Because i think the stock could really rip after that, especially if the overall market continues with this bullish upswing.

As a quick side note, this charting software is called trading view and there's a link to a free 30-day trial in the description of this video. 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, if i ever get the opportunity to invest so make sure you have your notifications turned on as things currently stand, neo Is not a profitable company and it's definitely a speculative play. I would never recommend putting a large portion of your portfolio into this type of investment, but if you have an appetite for some risk, i think there's a very good chance that neo stock will have monster returns in the coming years, so it might be worthwhile to Pick up a few shares with that being said, though, 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 thoughts on neo in a comment below.

Do you think this is just the beginning, or do you think that the stock is overhyped? My entire goal with this channel is to provide as much value as i possibly can. So i truly hope that you got something out of it. If you have any suggestions or recommendations for how things could be improved, feel free to, let me know 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 engagement really helps with getting this video in front of other people who may be interested thanks for watching and until next time.

Best of luck in the markets, you.