What's going on moon gang, i hope that you had a great thanksgiving in this video. I will be doing a technical breakdown of two ev companies. That seems to have everyone excited these days. Neil and tesla.

I will be laying out the key areas of support and resistance, so we can better handle whatever december has in store for us. 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 and as always, if you enjoyed this video, it would be great if you could drop a like, because it really helps me out. All of your support is truly appreciated and now with that out of the way, it's time to rock and roll, let's kick things off with the new kid on the block neo. As of november 24th, neil posted a brand new fresh out of the box all-time high at 57 dollars and 20 cents from there there was a gap down, but both traders and investors have been using it as an opportunity to buy shares of the company.

Neo is currently trading just above 53 and at this price level, that means it has a market cap of 58 billion dollars over the past week. Neo is up 17.5 percent over the past month, it's up 86 percent and over the past six months, it's up more than 1200 percent. Absolutely incredible for those of you who are new to the channel. Neo really started popping off in june of 2020 and for the longest time it was following this trendline, but in mid-october, when the rest of the ev sector was struggling, neo had this small gap up which led to a new relative high and once the trend line Was reaffirmed, neo has been posting new highs, like it's no one's business in terms of resistance, the closest one would come at the previous high of 5420 and past that we would have the current high at 57.20 from where the stock is right.

Now, to get back to that level, that would be a gain of almost eight percent. Once neo gets above that, we would have to wait for the chart to develop in this region to call out the new areas of technical resistance in terms of support. Today's low found demand in the 49s, which is exactly where the stock was rejected on two occasions below that we have a previous high of 45 29 and it is a bit of a long shot. But if the bears somehow pushed neo below that, i would then be watching 38.

beyond paying attention to these levels of support and resistance. I will closely be watching the rsi for divergent setups, or in other words i will be looking for the stock to make new highs, but the rsi doesn't, as you can see, neo stock price was lower than it is right now, but the same cannot be said About the rsi, this is bearish divergence and it commonly means that the buyers are getting tired. So what we're looking for is for there to be another surge upward that brings the rsi above roughly 84.. However, if this scenario doesn't play out and neo is forced to consolidate, it could be a great opportunity to invest in the company at a key level of support, but to get a better idea of what might happen in the immediate future.

Let's switch over to the four hour chart for most of november neo stock was caught in this bear flag that i have in the blue trend lines. Then, on november 13th the sichon short seller report came out and there was a sell-off which led to the formation of this bullish. Pennant then, following a pretty positive earnings, announcement, neo was able to find support at 45 30, which eventually led to this breakout and rally to the current all-time high. I would not be surprised in the slightest if part of this rally was because the short sellers are being squeezed anyway.

I want to bring your attention to what's going on with the rsi from november 4th. Until now, the stock has been posting new highs, but the rsi hasn't if the stock doesn't continue to rally and we see the rsi shoot up, this would be a bearish divergent setup. Now, personally, i wouldn't mind a bit of consolidation, because i currently do not own any shares of neo and i would like the chance to invest somewhere between 38 and 45, but that opportunity has not presented itself in quite a while, but on the plus side i Was able to make some money off of call options here around november 19th to the 23rd? If you're interested in the details of this trade, i would recommend checking out my most recent neo video, because i explained in detail how i was able to make just over 70 in three days. Granted the position was small, but hey profit is profit.

Now, let's switch gears to tesla the stock is currently trading at 568 dollars and, as i'm filming this video, it posted a brand new all-time high at 572.. At this price level, tesla has a market cap over 500 billion dollars and over the past week it is up 17 over the past month, it's up 34 and over the past six months. It's up 241 percent from march of this year. Until now, tesla has consistently been putting in higher lows and, more recently from august until september, following this rally that was prompted by the company's 5 for 1 stock split tesla was caught in this triangle, which led to a breakout and a double top at 462.

Then, following this sell-off, tesla found support at 412 and then once it was announced that tesla would be included in the s p 500. The stock has been on a rocket ship ever since. In all honesty, i don't think that this rally of 39 is over, because if you take a look at the rsi compared to the last relative high, we still have room to run now in terms of technical resistance. It's pretty difficult to call out a specific price because the chart has not developed in this region.

We are in a phase of price discovery and we need to see how the supply and demand shakes out, but in terms of psychological resistance, i would watch 600, which would be a gain of 5.75 now, unfortunately, if you missed this breakout, the closest support is not That close, you could watch this trend line roughly around 520, which would be a drop of 8.5, but the main one i'll be watching is the previous high and psychological level of 500, which would be a drop of almost 12 similar to neil as we move forward. I would recommend paying attention to divergence in the rsi between the old high and the new high, but in the meantime, let's see, what's going on in the four hour chart when it was announced that tesla would be included in the s p 500. The stock gapped up and for the third time was rejected at 462. I then posted a video saying that if the stock could get above that there would be nothing stopping it from testing the previous high of 502..

As a quick reminder, it's good for a stock to be included in the s p 500, because there's a lot of money managers who will be forced to buy shares of the company if they have funds that track the index and more specific to tesla. I thought if it could get above 462, it would run right to 502 because there was no resistance in the region anyway, after dancing around here for a bit and finding a new support at 490, the bull camp has been in complete control. This rally has so much momentum that i think there's a very real chance. Tesla could be hitting 600 in the near future.

Now this stop will most likely have to take a breather at some point. This technical structure is referred to as a bear flag and the rsi is definitively in the overbought zone, but timing that would be extremely difficult. I would never recommend trying to short a stock with this type of momentum. Personally, i do own shares of tesla and my cost basis is exactly 400, so i am more than happy to sit back and see how high the bulk camp can push this.

Even if tesla were to hit 600, i would not sell my shares. I strongly believe that tesla will be trading much higher years down the road. Honestly, i feel the exact same about neil. Both companies prompt a lot of excitement and have great brand recognition, and on top of that they're in the eevee sector, which is set to explode in the coming decade, as things continue to develop with both of these heavy hitters i'll make sure to keep you updated In future videos and also keep you posted on any important changes to my portfolio and as a quick side note, the name of the charting software that i use is trading view and there's link in the description of this video.

The company is currently running a black friday deal that is 60 off and you get your first month free if you're interested in checking it out. It's a great way to support this channel thanks for making it to this point in the video. I really hope that you found some value in it. As a quick reminder, i am not a financial advisor, so i would highly recommend that you take the time to do your own research.

I would love to know your thoughts on both neo and tesla. In a comment below, where do you think the stocks are headed in december 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 gang 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.

.