What's going on moon gang, i hope you're, having a wonderful day in this video, i will be discussing two electric vehicle companies that each have phenomenal growth potential, neo and workhorse. I will be doing a technical breakdown of both stocks, so we are better prepared for whatever plays out next, but before i get into 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 attempting to hit 5 000 subscribers by the end of this year and your help with that would truly mean a lot to me. 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 that i got that out of the way, let's get started. Okay, then, the stock market has now closed for the week and the three major indices all put in a solid day. Unfortunately, the same cannot be said about the eevee sector. In fact, neil put in a rare red day and dropped almost eight percent neo trades under the symbol, nioh and its stock is currently at 44.56.

Today's action was pretty wild. The total volume of shares traded was 574 million, which was double that of the average volume over the past 10 days. At this price level, neo has a market cap of 52 billion dollars, which makes it roughly an eighth of the size of the leading ev company. Tesla, i wouldn't worry too much about today's decline because over the past week, neo is still up seven percent over the past three months, it's up 217 and from the start of the year.

Until now, it's up a jaw dropping 1 000. Thus far in november, neo is continuing its run and it's up a pretty respectable 45, and here is the current technical situation that we are dealing with when the market opened neal gapped up and quickly hit a new all-time high of 54 dollars and 20 cents. But from there the bears took control and pushed the stock down and it closed at the previous high of 45 dollars when the market opens back up, i'm expecting the bulls and bears to battle it out at the previous resistance turn support. If the bull camp ends up winning, then i would watch the all-time high, which would be a gain of 21, but if the bears end up winning, i would watch the previous low at 38, which would be a decline of almost 15.

As things currently stand. I am favoring the bear camp and that's because of what i'm seeing in the rsi. If you look at neo's high from november 9th and then look at today's new high you'll see that even though the stock went higher the rsi didn't, this is known as bearish divergence and it commonly means that the buyers are becoming exhausted. On top of that, the rsi value is above 70, which means overbought, and the last few times that neo was in this region.

The stock was forced to consolidate. You should keep in mind that when a stock is up almost 60 percent in one month, it is by no means abnormal for it to take a breather, but to get a more detailed understanding of. What's going on, let's check out the 4-hour chart on this time frame, we can better see that since late october, neil has been caught in this upward channel, which is also referred to as a bear flag on november 10th. It did end up breaking down, but in a very bullish fashion, it recaptured this trend line, but that was short-lived and now we're back outside of the channel.

So not only was there this bearish technical structure, but there was also that same bearish divergence in the rsi. The stock went higher, but the rsi didn't, and it was recently in the overbought zone from my past few neo videos. I've been saying that i want the chart to develop in this region because i don't own any shares of the company and i'm looking for the opportunity to invest now. This is by no means the strongest support, but i am considering picking up a few shares at the previous low of 38 because we do have an upcoming catalyst event.

The earnings report on november 17th to be fully transparent. If i do end up picking up shares at 38, it would only be a partial position, because i would much rather load up on shares of neo in the low 30s, as things continue to develop. Technically, with this chart and fundamentally with the earnings announcement i'll make sure to keep you updated in future, videos, as you can see from this chart, workhorse has had a very different path than neo workhorse trades under the ticker wkhs and it closed out the week by Dropping 6.34 workhorses stock is currently at 19.22 and, as you can see from the volume it is far less than nil. Workhorses market cap is at 2.3 billion dollars and over the past week, it's up 11 over the past three months, it's up 23 and from the start of the year.

Until now, it's up 532 percent. In the first half of september, workhorse had a very nice rally and posted an all-time high of 31. From there there was a sell-off and a bit of ping-ponging back and forth. That was followed by a bullish breakout that was quickly smashed down and the stock ended up dropping 45 percent, but from there we are on a mini rally and workhorse is now up 25 similar to neil workhorse is currently battling it out at a previous resistance.

Turn support turn resistance if the bulls end up winning the next resistance would come just below 22 dollars, which would be a gain of 13 percent, and if the bears end up winning the next support would come just below 70 dollars, which would be a decline of Twelve percent: let's take a quick peek at the rsi. As you can see, this systematic selloff was accompanied by a similar decline in the rsi, and once we were getting very close to that oversold zone the stock. Finally, bounced workhorse is a perfect example of why you shouldn't put that much of your portfolio in a speculative play. Things can seem great until they're.

Not don't get me wrong. I am a big fan of both neo and workhorse and would argue that they have very bright futures, but that doesn't mean that you should let your risk get out of hand. Anyway, i digress. Let's check out workhorses for our chart.

Now we can see that workhorse has also been caught in a bear flag since late october. It was rejected at 1968 on two times on. The third attempt it broke through and then was swiftly rejected at 21.79. If you're interested in swing trading, you could try buying workhorse at this bottom trendline and then riding it the next lake higher, but i would recommend paying close attention to the rsi personally, i'm already invested in workhorse and my cost basis is just around 18.

I know it's a long shot, but i would love to invest more in between the 14 and 15 range moving forward. Workhorse already had its earnings report and it was a mixed bag of news. I covered that in detail in a previous video, so definitely feel free to check that out, but from now until the end of the year, i'll mainly be waiting for the usps contract announcement. Not only would this be a huge revenue boost, but based on the short interest, there could be a massive short squeeze and the stack might even clear, 50 dollars.

I guess time will tell to see how all this plays out as things continue to develop, with both neo and workhorse i'll make sure to keep you updated in future videos i'll keep you posted on when i finally invest in neo, and also let you know if I ever buy more shares of workhorse, so make sure you have your notifications turned on to sum things up quickly. I am very confident on the long-term future of neo and workhorse, because the eb sector has a lot of momentum, but in the short term i think there could be some volatile swings for both stocks because they are speculative plays, and on top of that, the virus Is putting a lot of pressure on the overall market? Obviously, though, these are my own opinions, so i would highly recommend that you do your own research. I would love to know your thoughts on both neo and workhorse in a comment below. I truly hope that you found some value in this video if you enjoyed it, 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 if you're interested in the charting software that i use there's a link to a free 30-day trial. In the description of this video and there's also a link to smd training, which is a group of people who talk about this type of stuff on a daily basis, i would highly recommend checking both out thanks for watching and until next time. Best of luck in the markets, you.