What's going on moon gang, my name is matt, and this channel is all about stocks trading and investing the eb company. Workhorse just had an amazing day, and i think it's really important that we talk about it in this video i'll, be giving you a quick portfolio. Update i closed a couple positions out and i open a few more and then i'll be explaining why workhorse had such an amazing day and why even better times are ahead after that also be doing a technical breakdown of workhorses stock. So you have a better idea of what price levels to watch as the chart continues to develop, but before we get into all that, if you enjoyed this type of stock market content - and you want to stay up to date with me, all you have to do Is join the moon gang by hitting the subscribe button.

Also, if you want free stocks, make sure to check out those links to robin and weeble in the description of this video, and now that i got all that out of the way, let's get started. So what changes did i make to the public portfolio? Well, basically, i closed two positions and then i opened three new ones. They all relate to options. I didn't touch any of the investments.

As of now the account is down on the day. It's right around. Sixteen thousand dollars here are the current options. I'll come back to those.

As you can see, i didn't touch any of these investments. It's the same one from the previous portfolio update video. Now, let's kick things off with the two option: positions that i closed, the first one was palantir. If you watched the most recent update video, you know that i had one palantir call option runner.

I ended up closing it for a profit. Let me quickly do a recap of that. So, on january 15th i bought four palantir call options with a strike price of 28 dollars and an expiration date of january 29th. Each one cost me two dollars and 10 cents, which means that the entire position cost 840.

Then, on january 25th, i sold one for 840, which covered the entire cost of the position, which means that this trade then became riskless. As in the worst case scenario, i would just break even but a little bit later, i sold two more at seven, a pop. So i locked in a profit of 1400 and then this morning i really didn't like what i was seeing in palantir. So i sold the last runner for 7.25, which means that on palantir i locked in a profit of just above 2, 100., the other one that i closed was the tesla one.

This was a very high risk play and i managed to lock in a small profit. Let me give you a quick recap of what happened there. So, on january 25th, i bought one 925 strike price call expiration date of january 29th for 13.50. I bought another one at 19., so the average between the two was 1625 and then similar to palantir.

I didn't like the action i was seeing in tesla this morning, so i sold them both for 23, which means that i was able to lock in a profit of just around 1300, so between tesla and palantir. Early this morning i locked in a profit of 3500.. Now i don't know if this is one of those big brain galaxy plays or, if i'm just being a degenerate gambler, but i took all those profits and rolled it into two new positions: one for palantir and one for tesla. The palantir one has a strike price of 37, an expiration date of january 29th.

I own five of them. They each cost me two dollars and 25 cents and i'm currently down eight percent on the position. You should know that this is a very risky play. I'm basically betting on their demo day event, which will take place on january 26 to be a huge success.

If it's a failure, the stock will most likely gap down and i'll lose a lot of money, but if they knock it out of the park, the stock will most likely gap up, and this position will have a very nice return. Another very risky play is my new tesla position, so the strike price is thousand dollars. I own two of them. They each cost me nine dollars and fifty cents.

As of now. I am down 24 25 on the position, but this is basically a bet that the company will do very very well on their earnings announcement, which is, after the market closes on january 28th, which is this wednesday. Both of these positions are very high risk to high reward and i'm viewing them as a bit more of a gamble, but i did make one pretty solid, logical and technically sound play today and that involves workhorse. In a recent speech from president biden, he said that the federal vehicle fleet is a massive one and he's looking to convert it all to clean energy vehicles made in america by americans.

This is great news for companies such as workhorse and lord sound motors. In fact, today, workhorse hit a new all-time high, workhorse trades in the ticker wkhs and right now it's trading just above 32. I am invested in this company. I own 22 shares at 22.50, i'm up 43 on the position, but after this announcement it made me so excited that i want to ride the overall wave in the stock.

So i decided to buy some call options. The strike price is 35. The expiration date is february 19th. I own four of them.

I paid three dollars per contract and, as of now, i am up 50 on the position, but i'm really looking to ride this wave and the overall bullish momentum. So i think that the specific one can go even higher. Overall, i think that the political and social push for ev and alternative energy companies is getting even bigger, which means that we have a lot of money making opportunities before we jump into workhorses chart. Let's do a quick q, a this one comes from junia ting.

I really hope that i'm saying that properly, could you tell us a little bit more about the significance of the four hour chart? First of all, this is a great question. Thank you very much for sending it in now. Personally, i actually like to use various time frames. I look at the monthly weekly daily four hour and then even some of the minute charts in my own trading.

I found that all these different time frames offer different bits of information and then, when you use them together, it paints a more full picture. I really like to look for an overall trend in the larger time frames and then i'd like to see if i could take advantage of a momentary correction in a smaller time frame. Obviously this is my own trading style and you should use whatever works best for you, but you should also know that if you're an investor you're going to care a lot more about the bigger time frames, such as the monthly and weekly, if you're more of a Swing trader you're, going to care a lot more about the medium time frames such as daily and four hour, and then, if you're more of a day trader the four hour. And then even some of the minute charts will have a much bigger impact on your own trading.

Once again, this was a great question and if you have any of your own questions feel free to leave them in a comment below for now, though, let's check out the charts alrighty, both lord style motors and workhorse, responded very well to the president's announcement. Lord sound motor, which trades on the ticker r-i-d-e gained 13.8 percent today and workhorse gained 30 workhorses stock is currently trading just above 32 dollars per share and thus far in 2021. It's up an amazing 63. Absolutely incredible.

This is the current technical situation. That workhorse is in for those of you who are new to the channel. Let me quickly explain what's going on, so these yellow lines are previous levels of support and resistance, as in areas that the stock has bounced off of or been rejected by. These white and blue lines are trend lines that the stock appears to be following these purple regions are just when the stock was range bound and on the bottom we have the rsi.

This is one of my favorite technical indicators and it stands for the relative strength index. Basically, it maps bullish momentum against bearish momentum when it gets very high, that's a lot of bullish momentum and when it gets very low. That's a lot of bearish momentum. I'll point out how this comes into play in just a bit in terms of workhorse: here's what's been going on so at the start of july it hit a relative high just under 23, then it sold off and became range bound in between 14 and 18..

This is actually where i first bought workhorse in my private account. I own it at 17 from there the stock exploded on the assumption that it would win the usps contract. It went all the way up to 31, but then that contract wasn't announced the stock sold off and then it started trading in this triangle structure, which is referred to as a bullish pennant. Now i know that's a fancy name - and you might not have heard it before, but it basically just means that it's trading in a triangle where we see lower highs higher lows and it's called a bullish pennant just because they commonly break upward in this case, workhorse Did break upward it hit a new lower high just around 30 and a half dollars.

Unfortunately, this bullish momentum was short-lived and the stock sold off. It came all the way down to 15 and then there was another assumption that the usps contract would be announced within 2020. It kept getting pushed off and from there the stock sold off again. But, as you can see, this new structure was once again another bullish.

Pennant, we were consistently seeing lower highs higher lows at one point: it was range bound again. This is where i bought it in the public portfolio. I really liked how it bounced off the technical support right around 20. I was a bit concerned here when it made another lower high, but after confirming the region of support between 22 and 23 and, of course, a bit of luck from that announcement from president biden, the stock has now shot up.

Not only did we have a bullish breakout of this trend line, but it broke above this region of resistance between 30 and 31, which is exactly where workhorse was rejected three times before the fact that it sliced through both of these points of resistance, this trend line And then this overall region makes me very excited for what workhorse is about to do before i get into what can play out next. Let's have a quick chat about the rsi, all these relative hives 31 30, and then this one at 28 were very much associated with spikes in the bullish momentum. You can think of this as a pendulum when it goes to a lot of bullish momentum. It's common for it to come back to bearish momentum and vice versa.

That's exactly what we were seeing here. Basically, the stock was being overbought and then it needed to cool off, which we also saw with a drop in the rsi. This is important to note, because that's exactly where we're at now with workhorse, it hit 33.3 as a new all-time high, but the stock is now above 70, which is commonly thought to be in the overbought territory. Now this is by no means a perfect technical indicator, and it also doesn't mean that the stock has to drop.

I mean if we take a look back at july when it hit 23, the rsi got as high as 96 and right now the reading is 72.73. So the stock theoretically still has quite a bit of room to run. The main thing that i want to bring to your attention is this spike of the last all-time high of 31. The rsi got as high as 77, so this is important because, as workhorse continues to push higher, we very much want it to bring the rsi with it to the point that it at least gets above 77 78.

And that's just because we don't want a bearish divergent setup. Now i know that's a fancy term, but all it means is that the stock went higher and the rsi didn't this. Divergence means that there's less bullish momentum at the new high than there was at the previous eye, and it's commonly indicative that there's a future decline, or at least a period of consolidation in the stock. So, basically, to avoid this, the ideal situation moving forward is not only that workhorse push is higher, but we want it to bring the rsi with it now in terms of price targets, the stock did just hit a new all-time high.

So clearly the chart hasn't developed in this top region from a technical perspective, we're gon na have to let price discovery play itself out, so we can better understand the upcoming levels of supply and demand. But with that being said, i would highly recommend watching those key psychological levels of forty dollars, then especially fifty dollars. On the other hand, though, if this action is simply a fake out breakout, i would look for support to be found at the previous levels of resistance, which would be this region between 30 and 31 and then past that i would recommend paying attention to 28, which Was not only previous resistance, but it could potentially align with this top trend line to clarify, i am definitely very bullish on the situation i mean i'm invested in the company, i own call options, but in terms of technical analysis, i just wanted to be very realistic About the current situation that workhorse is in, i also want to know whether workhorse has a nice explosion upward or if the rug gets pulled and the stock plummets. I think that the move will be considerable.

My reasoning for that is that the stock market likes to oscillate between periods of expansion and consolidation and back to expansion. So what i mean by that is workhorse from mid-september. Up until now has had lower highs and higher lows, which means that the stock has definitively been consolidating. This means that a period of expansion is quote unquote due, and i think that this action could be the start of it.

Obviously the key question now is: what direction will this expansion be in, whether that's up or down? Personally, i am bullish on the situation because of the positive announcement, the overall positive sentiment surrounding the ev sector and, of course we have these nice technical breakouts. I would love to know your thoughts on workhorse, tesla and apple. Do you think that i'm being overly optimistic, or do you think that these positions are worth the risk? If you enjoyed this video - and you want to show your support for the channel, it would be greatly appreciated if you could drop a like leave a comment and join the moon gang by hitting the subscribe button. All that engagement really helps this channel out.

Also, don't forget that if you want free stocks check out those links to robinhood and weeble in the description of this video thanks for watching and until next time best of luck in the markets, you.