What is going on moongate, my name is matt, and this channel is all about stocks trading and investing. This video will be all about neo. If you're invested in you or if you're, just bullish on the company, i really think you'll enjoy what i have in store for you. First i'll be explaining one scenario in which neostock could be skyrocketing close to 100 by the end of 2021.

And after that i will be doing a technical breakdown of neo stock, so you have a better idea of the upcoming levels of support and resistance that will be in play over the next few trading days before i get into all that, though, if you find value In this type of stock market content, it would be truly appreciated if you could drop a like, and if you haven't already don't forget, to join the moon gang by hitting the subscribe button. Also, if you want free stocks, make sure to check out the links to both weeble and robinhood in the description of this video and now without further ado, let's rock and roll well, if you're interested in new this headline should make. You feel some sort of way: undervalued, neostock is gunning for 92 dollars per share. Neo posted fantastic growth on january 3rd, in its fourth quarter and 2020 full year.

Electric vehicle deliveries and the author of this article believes that neo stock is likely to have a very good 2021 and thinks that the stock could shoot up very close to 100 per share. I have to admit, after reading through his reasoning, it did get me pretty excited. So, let's dive into how we came to this evaluation now there is quite a bit of detail in this article, so i would highly recommend you checking it out yourself i'll make sure to link it in the description below. But for now let's go over the key parts.

Basically, he extrapolated forward what he thinks their deliveries will be for the year he came up with with with 165 000 evs, which would translate to 9.2 billion dollars in 2021 sales, and then, when you use tesla as a base point. That means that neo should be about 19 of tesla's overall market cap, which means that neo should go from a valuation of 95 billion, all the way up to 155 billion and then based on the current amount of shares that would roughly translate to 92 dollars per Share so basically, he computed the amount of expected deliveries in 2021 switched that over to sales in terms of revenue which came up to 9.3 billion and then using tesla's current valuation as a benchmark. That means that neo should be trading at 92.. This is a pretty crude method that could most likely be refined and even admits that in this article, but the bottom line is this: the author of this article believes - and i have to admit - i agree with him that neostock is going to the moon in 2021.

I just got this great question that i want to share with all of you. Jesus solomon said the rsi changes with the time frame. You are looking at daily stock chart, weekly monthly, etc, which time frame would you say, is the most accurate to predict whether a stock is overbought or oversold. Thank you very much for sending this in.

For those of you who don't know, rsi stands for relative strength index and it's a technical indicator that happens to be one of my favorites. If you want a more in-depth discussion of what the rsi truly is i'll post a link in the description of this video, but for now it's basically a technical indicator that tracks bullish momentum against bearish momentum. The most common way to calculate this is by looking at the most recent 10 trading bars, which means that it could be dramatically different based on the time frame, you're in and that's exactly what jesus was alluding to now to more specifically answer his question, of which One is the most accurate. It all depends on your trading style.

If you were a day trader, the 5 minute 10 minute and 15 minute will have a much greater impact on your life. If you're more of a swing trader, i would suggest taking a look at the four hour chart in daily chart and if you're more of an investor you're going to care much more about the weekly chart and maybe even the monthly chart. So, basically, you have to use the time frame that best fits your own trading style alrighty. In a nice change of pace, neostock finally had a green day, it ended up gaining one percent, which puts the stock just over 58 per share.

Thus far in 2021, neo is up almost 20, which is pretty nice, considering the fact that we're only three weeks into the year. This is the current technical situation that neo's in for those of you who are new to the channel. I don't want you to get overwhelmed by what i just added to the chart. So let me quickly explain a few of these things on the bottom.

Here is the rsi indicator. Above the red line is a lot of bullish. Momentum below the green line is a lot of bearish momentum, and most traders and investors use this for reversion place and i'll explain what that means in just a second. These yellow lines are technical areas of support and resistance, as in areas that neo has bounced off of or been rejected by, and these white lines are trend lines and technical structures.

That neo seems to be adhering to over the past couple weeks from the end of october. Up until mid-november, neil was trading in this upward channel and in the world of technical analysis. We call that a bear flag because they commonly break downward. That's what happened with new, but this was most likely prompted by some negative tweets from citron research related to neo, but it really didn't matter because eventually, support was found at 45 and it ended up filling out this triangle.

This is referred to as a bullish pennant. I don't want you to get scared by that fancy name, it's basically just a bullish pennant, because the stock was trending upward, it formed the triangle and we call it a bullish pendant because they commonly break upwards. That's what we saw happen with neo and it went to its previous all-time high, just below 58. from there.

Neo did sell off in this downward channel, which is the exact opposite of this channel, and that's why we call this one: a bull flag. They do break upwards most of the time and this happened with neil, but the action was a bit weird because it ended up just riding this chopped trend line all the way down to an undershoot at 38.. I'm calling this an undershoot, because previously it bounced off of 38 actually on two separate occasions and the fact that it undershot it on this attempt is a bullish one. It just means that more buyers are stepping in and they ended up pushing neo to just below 50, and we got the formation of this second bullish pennant, as we were heading into the neo-day event.

The stock did break upward and then the day after the neo day event, we saw this gap up from 59, all the way up to 66 and since then neo has been selling off. You may have noticed that this triangle is the exact same bullish, pendant structure that we saw twice before and you're exactly right. I really thought we would have another breakout from there, but instead we had a breakdown, and this is a very good lesson. That technical analysis can help guide you to make better training and investing decisions, but it's never going to be 100 accurate.

I would, however, like to point out the power of the rsi. If we look at this current high of 67 and then these last two relative highs of 54 and 58 you'll notice that they're all associated with spikes in the rsi after hitting those values, the rsi cooled off, and then this was mapped to a sell-off, or at Least, a period of consolidation in neo, so before when i was saying that the rsi can be used for reversion, i basically meant that when there's a lot of bullish momentum, typically the bears step in and vice versa, when there's a lot of bearish momentum. Eventually the bears like to step in as for what's been going on most recently, there was a bearish breakdown of this bottom trend line, and i very much thought that the stock would pretty much nose dive to the next support at 54, 20 and, as things have Been playing out, it looks like i was wrong. Instead, neo has been range bound between roughly 55.5 and 59, and i really like this because it reminds me of the last time that neil undershot, a support which was this missed hit of 38..

The fact that now neo is undershooting, this support makes me think that the bulls are starting to step back in we're, also seeing that being reflected in the rsi. As you can see here, it's finally starting to perk up a bit if there is any follow through on this bullish momentum, i'm expecting the first resistance to come at 60 dollars. That's where neo was rejected on january 20th, and it was also support back in this triangle structure past that i would look for more resistance at 64 and then, of course, that would be followed by the all-time high of 67.. Now i don't think that this will happen in the immediate future, but when neo most likely hits a new all-time high from a technical perspective, i can't really call out new areas of support and resistance, because the chart hasn't developed in this region.

However, i would suggest paying attention to the key psychological level of 75 just so you know. I very much want this bullish scenario to play out as i'm filming this video i own five call options on neo with a strike price of 75 dollars and an expiration date of february 19th. If you're not too familiar with trading options, don't worry about it. Basically, i have a lot of money on the table, betting that neo will go up and as of now, i am down a considerable amount.

Clearly, i'm biased and i definitely want the stock to go up, but that won't keep me from giving you a well-balanced technical analysis. You should be aware of the potential downside in case the bear camp ends up rejecting neo right here at 58.5. If the bull camp can't hold 56, that next major support will come at 54.20, which was major resistance in early january, and i do think that this one is a bit unlikely. But if the bear camp somehow pushes neo even further, the next support would come at 50.

Like i said, i do believe that this price level is relatively unlikely, but if neo does retrace all the way down to 50, you can bet your bottom dollar that it will heavily be investing in the company over the next few trading days. The situation is pretty simple: it all comes down to who will break first, either the bear camp will win and the stock will break below 56 or the bull camp will win and the stock will break above 60.. Above 60. I feel pretty confident that the stock will return to 64 and below 56.

I feel pretty confident that neil will return to 54. so once again just be on the lookout for that above 60 or below 56.. I also want to let you know that i personally believe. Whichever way the next move is, i do think will be a considerable one.

You see in the stock market, it's common to oscillate between periods of consolidation, expansion and vice versa. As you can see here, neo was consolidating, then it expanded and once again we're consolidating. Now i can't guarantee which way this expansion will be, but i do think that after this period of consolidation, we will see a sizable move. I would love to know your thoughts on neo in a comment below.

Are you bullish bearish, and what is your price target? Do you think that the stock has a realistic chance of getting close to 100 within 2021 and, of course, if you have any questions, feel free to post those, as well as a quick reminder, if you want free stocks, make sure to check out those links to Weeble and robin hood in the description of this video, speaking of which, if you enjoyed this video, don't forget to drop a like and if you haven't already join the moon game by hitting the subscribe button. Thanks for watching and until next time. Best of luck in the markets, you.