What is up moon game today i'll be having a quick chat on neo in this video i'll, be taking a little bit of a step back, so i can better explain why i believe that neil will continue to perform in 2021. After that also be doing a technical breakdown of neo stock, so we have a better idea of what price levels to watch over the next few training days. As a quick reminder, if you enjoy this type of content - and you want to be a member of the moon, gang - don't forget to hit the subscribe button and drop a like all. That support is truly appreciated and now without further ado.

Let's get started in a year that will be marked by craziness and volatility. I truly believe that neo is one of the most successful stock stories of 2020. from the start of the year. Until now, neo stock is almost up 2 000 and over the past 14 months, it's up more than 3 000.

In that same time, frame neil went from having negative margins, slow delivery and a pretty weak balance sheet to having positive margins. 100 year-over-year delivery growth, where each quarter is getting better than the previous and the balance sheet is heading in the right direction. Now, i'm in no way predicting that neo will grow another 2 000 in 2021, but i do think that the stock will continue its rally and have considerable growth. Next year.

Neo is expected to release two new vehicles and expand into europe in more of a general sense. Neil will be elevating its business to the next level. I strongly believe that neo will be a beneficiary of the current ev wave, and on top of that, they are uniquely positioned to take advantage of the massive eevee market in china. I strongly believe that neo's future is a bright one now to get a better idea of what neostock might do over the next few trading days.

Let's check out the charts alrighty the market is about to close for the last full trading day of the week. Don't forget that it is a shortened week because of the holidays. Neo is currently trading at 47 and a half dollars which means over the past three months to the past year. It is very much in the green and over the past year, it's up almost two thousand percent.

Absolutely incredible. This is the current technical situation that neo is in for those of you who are new to the channel. Here's a pretty quick recap: neo really came onto the scene in june of this year and for quite a while. It was following this trendline and then in october, when the rest of the ev sector was struggling, neo actually had a breakout to a new relative high of 29, and once this trend line was reaffirmed, neil was off to the races.

The first major hiccup came on november 13th, when citron research came out with some bearish comments on the company, but that was quickly shrugged off and neo made its way up to the current all-time high of 57 dollars and 20 cents from there. There was a sell-off all the way down to 38, which is also where the stock found support on november 10th. After that, there was a bounce up to 48, which is where it was rejected, and then we actually had an undershoot of this support and the stock once again bounced just a little bit higher just under 40 dollars. And now the bulls have fully been in control and the stock is trading around 47 and a half dollars.

If this bullish momentum were to continue, the first resistance would come just below 50, which is where neo was rejected on december 22nd, and also back in mid-november past that we have 54.20, and this was posted on the day that sichon came out with their bearish comments And, of course, past that we have the all-time high from neo's current price to get to those three levels of resistance. The first one would be a gain of four percent. The next one would be a gain of 14 and the all-time high is almost 20 percent away. However, with that being said, if this recent rejection is an official one, the way it was one two three times before, we would then have to watch the closest levels of support.

First, i would be watching 45 past that i would be watching 4250 and, of course, past that we have 38, which is where neo caught itself three times before from the current level. That first support of 45 would be a drop of 4.5 percent. Then we would have a decline of 10 percent and to return to 38 it would be a drop of almost 20 percent. As of now, the current setup is a pretty interesting one in the sense that it's very symmetric the farthest away, support compared to the farthest away.

Resistance is a one-to-one ratio. However, it is worthwhile to note that recently, the bull camp has definitively been in control. After putting in one two three four five six green days in a row, neal finally put in a red day, and it was kind of expected because it was at a major level of resistance. Now this in no way bothers me.

In fact, i actually think it's healthy. This bit of consolidation means that more momentum could be built up which increases neo's chance of breaking above this resistance just below 50 dollars, which would then set up a test of 54.20. As of now, there's really not too much going on in the rsi to get a better idea of what neo might do between now and the end of the year. Let's check out the four hour chart when you include pre and post market trading, you can better see some useful technical structures from late october up until november 13th, which is exactly when the citron tweets came out.

Neo stock was in this upward channel, which is also referred to as a bear flag. It gets its name because they commonly break downward and that's exactly what happened most likely, fueled by the negative comments from citron. Eventually, this formed a triangle which is also referred to as a bullish, pennant and foundation was found at 45 dollars. This led to a bullish, breakout and rally to the current all-time high.

Almost immediately after that, neo entered this downward channel, which is referred to as a bull flag, and that's because they commonly break upward. We did see that in neo, but for quite a while, it was riding this trend lying down and then it undershot this support. At 38 and since then, the stock has been rallying when i posted my last neo video. I mentioned that the bulls were definitively in control, but look for a rejection just below 50 dollars into my luck.

That's exactly how things played out moving forward. The current line in the sand, at least in my mind, is the nice psychological level of 50. If neil were to get above this, it would be a pretty easy ride up to 54.20 and in all honesty, if we get here, i would fully be expecting a test of the all-time high. An ideal situation would not only be for neo to return to these highs, but we would like it to bring the rsi with it, so it can at least get above 78.

So there is no bearish divergence to clarify what i mean by that. Take a look at november 13th and then again november 24th. Clearly the stock went higher, but the rsi didn't this is referred to as bearish divergence and it's commonly assigned that the stock might drop, or at least consolidate the last time this happened in late november. It did lead to neo being sold off as of now.

There is no divergence in the rsi and there is a quite a bit of room for it to run, which makes me think that neo has a pretty decent shot of getting above this resistance at 50. As the chart continues to progress over the next few training days, i would highly recommend paying attention to how the bulls react to the support at 45 and paying attention to how the bears react to the resistance at 50 dollars. As things continue to develop both fundamentally and technically, with neo i'll make sure to keep you updated in future, videos so make sure you have your notifications turned on if you agree with me and that neostock will continue its trip to the moon in 2021. Let me know in a comment below, if you disagree with me and think that i'm missing something i would love to have a discussion about it.

I will fully admit i am not a perfect investor. 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 that support really helps this channel out and as a quick reminder. If you're interested in free stocks make sure to check out the link to the weeble trading platform in the description of this video for the remainder of december, if you sign up and make the appropriate initial deposit, you will be awarded four free stocks.

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