What's going on moon gang, i hope all is going well in this video. I will be giving an update on the wildly popular eevee company neo. I will quickly be going over the company's q3 earnings announcement, then i'll be doing a technical breakdown of its stock and at the end i will be sharing the details of the position i just opened on neo, 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. My goal is to hit 5 000 subscribers by the end of this year and your help with that 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 traders and investors who may be interested and now that i got that out of the way, let's get started. Neo reported its third quarter earnings after the market closed on tuesday november 17th. This was the headline that followed neo's. Quarterly loss narrows more than expected, but stock swings to losses.

This last part was true, the very next trading day where neo dropped just over three percent, but as of thursday, the 19th. The stock has more than rebounded. This bullish push was expected as you'll see from the details of the earnings announcement. Neo's adjusted net loss came in at 147 million dollars or 12 cents per share.

Analysts were predicting a loss in the range of anywhere from 20 to 15 cents per share. Revenue rose 146 percent to 666 million, while analysts were predicting 664 million sales guidance. For the fourth quarter was also above expectations. So far, so good neo was able to be on earnings per share revenue and also raised their guidance.

Neo said to deliver 12 200 vehicles in the third quarter compared to 4 800 vehicles in the third quarter of 2019 and 10 300 vehicles delivered in the second quarter of 2020. If you watched my last neo video, i mentioned that i would be paying close attention to the expected deliveries for the upcoming quarter and that did not disappoint the founder and chief executive said. We expect to deliver 16.5 to 17 000 vehicles in the coming fourth quarter, which would be an impressive 30 percent growth. Analyst at deutsche bank said this.

Neo's delivery outlook was materially ahead of consensus, and the company's supply constraints appeared to be less of an issue than we had expected, with capacity ramping up faster than anticipated, or, in other words neo is growing faster than anyone expected. Besides the delivery outlook, the company also guided for fourth quarter revenue between 922 million and 948 million, which would represent an increase of about 120 to 126 percent from the fourth quarter of 2019. This guidance blew away expectations of 813 million, so across the board, neo was able to beat earnings expectations which makes me think that its stock will hit a new all-time high sooner rather than later with. That being said, let's switch over to the charts when the dust settled.

For the day the results were a mixed bag, the main market index, the s p, 500, gained .42 percent. The tech heavy nasdaq 100 was up 0.78 and neo gained a very respectable 7.5 neo trades under the symbol, nio and the stock is currently sitting at 48. The total volume of shares traded was extremely high relative to other stocks, but today's action was actually below its own 10 day average. Over the past week, neo is essentially break even but over the past month, it's up 74 and over the past three months.

It's up. 243 overall neil's performance has clearly been phenomenal if you've been keeping up to date with my technical breakdown videos, you will be familiar with the current situation. This drop of 3.3 percent is what happened the day after the earnings announcement, but after today's results, that drop has clearly been erased. This previous high of 49.30 has proven to be an important support over the past three days.

If this bullish momentum continues, i will be looking for the stock to clear this previous double top of 49.30, and then we would be on our way to testing the all-time high at 5420, which would be a gain of 12 if this ends up becoming a triple Top at 49, i would be looking for support to be found once again at 45, which would be a decline of 6.5 if the bear camp pushes the stock below that. I would then be looking for support to be found at 38, which would be a drop of 21 percent. If this latter scenario were to play out, i would in no way be concerned. In fact, i would look at it as an excellent buying opportunity from june of this year, until now, neo stock has been on an incredible tear, so a healthy pullback would in no way be abnormal from july until september, the stock was following this bullish trend line And then, in october, when all other eevee stocks were struggling, neil broke out, reaffirmed the trend line and then was off to the races in a truly impressive manner.

The overall trend for neil is clearly a bullish one until the stock starts putting in lower lows, i would argue that the dips are to be bought. The only issue with that is that neo rarely dips moving forward. I think there's a pretty good shot that we get above 54 20 sooner rather than later. The last time that the rsi got to 80 was in mid-october, when neal posted a new relative high at 30.

From that point, a period of consolidation followed before the next leg. Up once again in november, the rsi hit 80 with a little bit of bearish divergence, but over the past few days the stock has been consolidating which allows the rsi to cool off just a bit. If and most likely, when the bull camp pushes neo above 49, i am extremely confident that we would be on our way to testing the high at 54 and i think, there's a pretty good shot that we will be posting brand new all-time high. When you take a look at the rsi, there is still room to run but make sure you're paying attention for divergent setups on the screen.

Now is neo's four hour chart at the time that i'm making this video. I do not own any shares of the company. I was looking to invest somewhere between 38 and 30, but that opportunity has not presented itself in quite a while, but because i've been paying attention to neo on a daily basis. I noticed that when the sichon report came out, 45 was once again acting as resistance.

This was then followed by it, acting as support on two occasions when the market closed. Yesterday, i figured if this price level could hold once again there's a pretty good shot of returning to the mid-49s and after that would be all the way up to the moon. So because i wanted a piece of this upcoming move, but i don't like to invest near all-time highs, i decided to buy some call options to be fully transparent. Here are the exact details of the options that i bought? The strike price is 55.

The expiration date is december 4th and the premium is dollars and 64 cents. I know most of the time i talk about my investments, but once in a while, when i see a good opportunity, i like to trade options, if you would like to hear more about those in the future, let me know in a comment below, as things continue To develop with neo i'll make sure to keep you updated in future videos i'll keep you posted on how the option position plays out and also let you know when i finally invest in the company so make sure you have your notifications turned on thanks for making It to this point in the video your support truly means a lot to me as a quick reminder. Everything expressed 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 more specifically.

How long do you think it will be before the stock breaks above the high at 54 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.