Houston, we have ignition. I really hope that you're buckled up, because neo is preparing to shoot to the moon. My name is matt and on this channel we talk about stocks trading and investing now. Thus far in 2021, the ev sector has been on fire and i think things are about to get even hotter.

The neo day event has now concluded, and by most accounts it was an absolute blockbuster. In this video, i will be discussing the main announcements and launches that came from the event and then i'll be doing a full technical breakdown of neo stock i'll, be highlighting the key price levels and technical structures that will be in play. This upcoming trading week make sure you check that out, because i'm expecting some pretty big moves before we hop into all that fun stuff, though, if you enjoy this type of stock market content, don't forget to join the moon gang by hitting the subscribe button. My goal is to hit 10 000 subscribers by the end of january, and your help with that would be truly appreciated.

Also, if you are interested in four free stocks, make sure to check out the link to the weeble trading platform. In the description of this video and if you want a fifth free stock, there's also a link to robinhood and now without further ado, let's roll the tape alrighty, let's hop right into the good stuff, neo more than delivered on its neo-day event, expectations - and i am Very excited to see how the stock will react. Neo unveiled its new et7 sedan, chinese electric vehicle, startup neo unveiled its fourth production model saturday, at the company's annual neo day event. The chief executive and founder william lee said that the luxury et7 sedan will cost between 69 000 and 81 000, depending on the configuration would be a cozy living room with new autonomous driving capabilities and features, including seats with inbuilt massage functions.

The car will be available in early 2022. now to say cozy living room. I think that's a bit of an understatement. The new et7 will have soft closing doors, air filtration system and even special acoustic glass that helps dampen sound.

Yes, these vehicles are more expensive than their competitor tesla, but don't forget that neo is specifically going after more of a luxury market. The founder said in 2021. We will strive to live up to the expectations and keep moving forward. He also debuted several new technologies, including a more powerful 150 kilowatt hour battery pack, an improvement on the 100 kwh battery pack that the company launched just two months ago.

This new battery has a claimed range of more than 621 miles, which beat expectations because going into this, we were looking for a number closer to 560 miles by comparison. Tesla's model 3 has a claimed range of 263 miles for the standard version and 353 miles. For the long version, obviously, if this is true, that's a pretty big win for neo. Mr lee also introduced an upgraded battery swap system capable of switching the car's battery more quickly than the existing system and with three times the capacity of the older system.

He said that the company would have 500 battery swap stations in operation by the end of 2021, which is a considerable increase because they're currently at 177.. These upgrades to the battery as a service program are pretty cool because it's one of neo's main differentiators and it seems to be pretty popular. So obviously, all these announcements launches and upgrades are pretty great news, but, what's even better is that the industry as a whole has some pretty positive tailwinds. I don't want you to forget that neo is uniquely positioned in the massive market, which is china.

Chinese ev sales grew strongly in the second half of 2020. After a prolonged slump in the country's auto market. Most analysts expect sales to build steadily in line with a government target for evs to account for 20 of all chinese vehicles, sales by 2025, equivalent to roughly 5 million passenger vehicles a year. Yes, neo is in competition with tesla, but i strongly believe that there could be multiple quote unquote.

Winners, especially as the sector as a whole continues to grow. Now, before we hop into the charts, there's one more important announcement that we really need to go over during the neoday event. The ceo claimed that the new autonomous driving system features technology that surpasses tesla neo partnered with nvidia to develop a new generation of automated driving electric vehicles. Neo and nvidia announced that the automaker has selected the nvidia drive orin soc for its new generation of electric vehicles, which will offer advanced automated driving capabilities at neoday.

The ev maker revealed its nvidia drive, overin powered supercomputer dubbed atom. This will first appear in the et7 sedan that will ship in china, starting in 2022. The ceo and founder of nvidia said autonomy and electrification are the key forces transforming the automotive industry. We are delighted to partner with neo a leader in the new energy vehicle revolution, leveraging the power of ai to create the software-defined ev fleet of the future.

I personally find this to be great news, because nvidia is a world-renowned company if you're not invested in it. Yet it's definitely worthwhile to check out the fact that nvidia was willing to partner with neo makes me more bullish on both of these stocks. Adams signals a major achievement by new in bringing automotive intelligence and autonomous driving to the market safely and reliably neo's next generation. Evs will feature the latest ai, enabled capabilities which are perpetually upgradable after the point of sale.

Now, to sum of this up, neo basically knocked the neo day event out of the park. I believe that the stock will react very favorably, but to get a better idea of what price levels we should specifically be watching. Let's switch over to the charts alrighty, then new closed out the first trading week of 2021 by gaining 8.5, and it also managed to hit a new all-time high. Just so you know, the story is pretty much the same for tesla stock.

If you believe that these two monsters will continue higher, let me know by dropping a like, as of now, neo is trading just below 59 and thus far on the year, neo has already gained a very impressive 21. This is the current technical situation that neo stock is in for those of you who are new to the channel. Here's a very quick recap of what's been going on. Neo has publicly been trading since 2018 and for quite a while, no one was paying attention to it.

Then it came up on people's radars in june of this year and for a bit it was following this trendline and then in october, when the overall stock market was pretty much struggling, mew actually had a technical breakout and made a new relative high just above 29 And then it reaffirmed this trendline and exploded from there. The first major red day of this rally came on november 13th and that's when sichon research came out with some bearish tweets about neo. Obviously the market didn't care, and neither should you because they also said some pretty negative things about tesla and nvidia and look at where they are now after creating a new base right above 45 dollars, neo went up to its previous all-time high of 57.20 from there. The stock did sell off and it eventually found support at 38, which is exactly where neo bounced on november 10th.

This is exactly why we do technical analysis, because previous price levels do have importance as we move forward after this failed bounce attempt in early december neo. Actually ended up undershooting this support at 38, which is definitely a bullish shine, and then it pushed up to the previous resistance just below 50, which is where the stock was rejected in early december and also mid-november. This mini run up was six straight days of green. So it's really not that surprising that the stock needed to consolidate a bit i'm a little bit surprised that it didn't come down to this support at 41.50, but this was the second understood.

So it's not that surprising that straight from there we did have an official breakout at first. The bull camp did struggle just below 50, which is where the stock previously was rejected. But eventually there was a second breakout and then for four days the bulls and bears were battling it out at the previous resistance of 5420, which is where neo was rejected on november 13th. Now, personally, i actually thought that this third breakout would come sooner because of the excitement surrounding the neo-day event, but don't forget that the stock market is never 100 predictable anyway, the breakout did eventually come and now we're sitting at a new all-time high.

Now, from a technical perspective, i really can't call out new points of resistance, because the chart has yet to develop in this region, but i am fully expecting a gap up the next time the market opens and then i'll personally be watching the key psychological level of 75 per share, as of now i am strongly favoring the bull camp, but i want you to know that the ideal situation moving forward is not only for neo to move upward, make new all-time highs, but we needed to bring the rsi with it as of now, If we look at the last relative high of 5720 to this new high you'll see that the rsi is actually a lower value, this is referred to as bearish divergence, and it means that there's less buying strength now than there was back here. This is commonly indicative of a future decline or at least a period of consolidation, so to get rid of this divergence, not only do we want neo to go higher, but we want the rsi to get above 78, so we no longer have this technical divergence, as I said i do believe that neo will proceed higher, but i don't have a magic 8-ball on me and i'm not a perfect trader. So if, for whatever reason say, investors decide to take profits and neo actually sells off, you should know that the closest support will come at 54.20 and past that we have 50.. Now i think it's very unlikely that this will happen, but if neo ends up retracing to fifty dollars a share, i believe that that would be an excellent long-term investment now to get a better idea of what neil might do over the next few training days.

Let's see what's going on in the four-hour chart before i hop into this time frame, i wanted to let you know that i'll be doing a live stream on january 10th, where i share my thoughts on neo, tesla, apple, alibaba and really all the other stocks that You guys are curious about so, if you're interested in that make sure to check it out, okay back to neo, so from late october, up until mid-november, it was in this upper channel which we call a bear flag and that's because it commonly breaks downward. There's a good chance that this breakdown was actually fueled by citron, but, as you can see, a new foundation was built at 45 and from there the stock bounced up to the previous all-time high from there. There was a sell-off in this downward channel, which we refer to as a bull flag and that's because they commonly break upwards. We did see that play out in neo, but the action was pretty weird because it ended up riding this trend line all the way down, and then we had the undershoot of the support at 38, which was followed by a small bounce back up to 50..

At that point, the rsi was getting pretty close to the overbought territory. This was followed by a brief sell-off and then from there we got a nice breakout of the resistance at 50, 54 and now we're sitting at a new all-time high. I think that this time frame does a better job at showcasing the bearish diversions i was just talking about so, of course neo is at a new high, but if we look at the relative high from january 4th and also the previous all-time high from november 24th, The rsi is lower than both of these spikes, but the stock is at a higher value. This is bearish divergence, so the ideal situation moving forward is don't forget that neo has to go higher, but we also want it to bring the rsi with it.

If this were to play out, the rsi would most likely be pretty blown out. So it's pretty common for there to be a small decline in consolidation at a new higher support, which would be a great opportunity to buy more shares of neo. Obviously, you should feel free to do whatever you want with your money. I wish you the best of luck, but my personal suggestion would be to not chase new all-time highs and wait to buy at levels of support with that being said, due to the bullish momentum currently going on in the ev sector, i really wouldn't be surprised if Neo doesn't retrace back down to 5420 and instead creates a new support somewhere in this region, as things continue to progress with neo stock i'll definitely make sure to keep you updated, but for now i'd like to share my current position, i'm not yet invested in neo.

I really just missed all these buying opportunities, but i do have some exposure to the stock through some call options. I own five call options on neo with a strike price of fifty six dollars and an expiration date of january 15th. The premium per contract was three dollars, because options are leveraged at a rate of one hundred to one. Each contract cost me three hundred dollars, so the position as a whole cost me fifteen hundred.

As of now, i have been fortunate and i'm up eighty-seven percent and with the success of the neo-day event, i do believe that these options will go even higher when the market opens on monday from a technical perspective, resistance doesn't really exist yet above 59 31, but I will personally be watching those key psychological levels of 60 and then that would be followed by 75, but from a technical perspective, i will be monitoring this bearish divergence in the rsi. I would love to get your thoughts on neo in a comment below. How do you think that the stock will react to the new day event and beyond that? What is your personal price target on you by the end of this year? Personally, i am pretty bullish, but i would love to get your feedback also. As a quick side note, a few of you have been asking me about a discord.

I currently don't run one, but if that's something that you'd be interested in, make sure to. Let me know, and of course, if you want four free stocks, make sure to check out the link to weeble and if you want a fifth free stock, make sure to check out the link to robinhood. If you enjoyed this video, don't forget to drop a like, and if you haven't already don't forget to join the moongig by hitting the subscribe button. All of your support is truly appreciated.

Thanks for watching and until next time best of luck in the markets, you.