Now, if you’ve been paying attention to the ev sector, you know that it’s been kind of struggling lately in this video to better figure out what’s going on i’ll. Be doing a technical breakdown of some of my favorite ev stocks, including tesla, neo, quantum scape and cciv, but before i get into all that technical analysis, if you want to join up with the moon gang, all you have to do is hit the subscribe button and Don’T forget to turn on your notifications, so you don’t miss any of the new content. We are on our journey to 100 000 subscribers and it would be much appreciated if you were a part of it all right before we happen to the technical analysis. I want you to know that, first of all, my long term thesis on the entire ev sector is a bullish. One between this public account and my own private account i’m invested in almost all of these stocks, because i believe not only in 2021, but really for the remainder of the decade that these companies will do exceedingly well. But for the purpose of this video, i want you to know that when right before the market closed today, on february 19th, i did buy some call options on cciv. The strike price is 60. The expiration date is mid march, so i’m, giving myself about a month. I bought two of them at 14.50, and this one is much more of it seems like there’s excitement about the whole spac merger deal with lucid motors coming out on monday.
I believe the 20 seconds, so this is more of a binary event. A casino play a flip of the coin, if you will of, if there is an announcement, i would love to do a classic. Buy the rumor sell the news type of thing. So if there’s some big announcement, i want to sell it into a pop related to that just so you know now let’s hop into some technicals on the screen. Now you see tesla’s daily chart for those of you who are new to the channel. Let me quickly clarify what’s going on because i know there’s quite a things on the screen at this moment, so these yellow lines are price levels of support and resistance. What i mean by that um it’s, just technical levels in the past, where the stock has bounced off of and when i say resistance, it’s, just areas that the stock has been rejected by so it’s, just really um important price levels that the stock seems to be Reacting to on the bottom, you have the rsi, which is also stands for the relative strength index and that just maps out bullish momentum against bearish momentum when it gets high, that’s a lot of bullish momentum and when it gets very low. That’S. A lot of bearish momentum, and just so you know, as values of 0 to 100, and finally, we have this white line. I just use that as a trend line that the stock appears to be falling so after tesla, which trades on the ticker tsla is currently trading at 781.
Thus far in 2021, it’s gained almost 11 percent, but really a lot of the excitement in tesla came in mid november this year, when it was announced that it would be put into the s p. 500. In fact, at that point, tesla was trading at 400 and from 400 it ran all the way up to 900 and since then it has come off a bit. But the reason i want to discuss tesla now is because it’s coming up on a very interesting technical situation. Not only is it currently sitting at a nice support of 780, where it bounced for the past two days, but also back on january 29th, but we’re getting very close to this extra support of the trend line. So what i’m personally waiting for is to see how tesla reacts to 780 slash 760 770. Basically, this area, because i think that the bull camp might be stepping in soon to buy tesla on a discount. If i see some bullish momentum pickup as in if i start to see the rsi bend back around i’ll, either buy more shares of tesla or buy some call options and see if i could play it all the way back up to this resistance of 860 past. That we have 884 and of course past that we have the all time high of 900. in more of a macro scale. I do believe that at some point in 2021 that tesla will pass a thousand dollars per share.
Now let’s switch over to the chinese china based ev competitor neo, as you can see, a very, very different technical setup. Neo is currently trading at 55, thus far in 2021, it’s still up 13, but recently it’s really been selling off. In fact, since february 10th until now, neo’s down 12, so if we rewind a bit neo shot up from october uh up until the end of november of 2020, and then it was in this triangle structure in the world of technical analysis. Excuse me, this is referred to as a bullish pendant. I know it’s a silly name, but basically it just means you have a triangle and these commonly do break upward and that’s. Why it’s called a bullish pendant since then? Neo came up it hit 67, and that was right after the neo day event, but since then it’s been kind of consolidating we’ve. Seen as this pattern of lower highs, it looks like there’s some important support right around 54.. Recently, there was a failed breakout attempt whenever you have a failed breakout attempt that usually is followed by more bullish or bearish sentiment and that’s. What we’ve been seeing in neo. So, from a technical perspective, what i’ll be looking for in neo is to see if this price level at 54 can hold. If i see that more buyers are starting to step in, i will try to buy neo and that will really optimize my risk to reward, because if it breaks down below 54, i could sell it for a small loss, but on the flip side, if the magic.
Fourth, test of this trend line is the final breakout attempt. Well then, i could hide ride it higher. The first resistance will come at 64., pass that we have 67 and of course, then we would have a new all time high. Overall, i do think that the market is, at a certain level overreacting to what’s, going on with neo so i’m looking to buy it at a discount. If it breaks below this, i would even consider picking up some at 50.. My long term thesis is bullish. So i’m just shopping for neo on a discount at this moment. Next up we have that spac play that’s in the news right now might be merging with lucid motors. Personally, i do think that’ll happen and i just want to bring up some craziness that we saw on the market today. Here’S the five minute chart uh. So there were some big movements. Actually cciv was halted. There was a huge volume spike and cciv got dumped right at the end of the day. It was coasting along at this support at 57.40, huge jump and then people bought it right back up. This is right when i got my call options on cciv this one at this moment in time, we can basically throw the technicals out the window because it’s going to be the binary event of, is the merger deal with lucid motors going to be announced this upcoming Week, if it is, i think that the stock will momentarily go higher and if it isn’t, i could see the stock selling off um.
I i really do think it’ll be a buy the room or sell the news type of situation in the long term. I do think that lucid motors will be a successful company, but for what’s going on right now. This is a huge run up on, essentially what we know as like speculation, it does seem like this merger will go through, but for things that are definitively known. This is still a speculative play, so it’s high risk high reward, and finally, we have quantum scape another eevee company uh. They make batteries for electric vehicles, they’re backed by both volkswagen and bill gates. So they definitely have some not only serious money but like well known people supporting them. Quantum scape trades under the ticker qs is currently trading at 62., thus far in 2021, it’s down 26 percent. As you can see here on the screen from december 22nd, up until the start of the year, quantum scape really sold off. At one point, it was trading at 133 dollars and then it dropped all the way down to 47.. I believe that this was an overreaction. I think people got a little bit confused about some of the documents that were released at the end of the year, so at first um i was trying to play quantum scape i bought in around here. In late january i was looking for a gap fill play up to 84, but then, when it broke below this low at 47, i cut my loss, unfortunately to me um.
I was a little bit too eager with it because, as you can see, quantum scape has come swinging back up so from a technical perspective. What i want to point out is here is: we might have a very nice cup and handle pattern in the world of technical analysis. This is a very, very popular pattern and it’s a pretty bullish one. So what it is is basically you just get this nice? U shape which is referred to as the cup, so basically from 74 back up to 74, it gets rejected. Then it comes down and makes a new higher low as it bounces earlier, and that would form the handle and then on the third test of the same high right around 74. In this specific case, we would get the breakout. So i really like the pattern. Setup. I’M, looking for the handle to be formed, but on top of that, i also know that the stock market, aka market makers, love filling these gaps and we still have a gap up to 84. As in since this drop down, this region from 74 to 84 hasn’t been tested, and i just if you look at some charts – it’s very, very common for stock stocks to fill those um gap issues. So not only do i see a bullishness in this cup and handle pattern, but i just know that the odds of a gap fill are pretty high right now. I don’t have a position in quantum scape, but depending on what goes on with this, handle, i might play a nice gap, fill all the way back up to 84.
. Of course, there are many many other eevee sucks um in the news right now, huge movements. We have plug, we have workhorse. Really the list goes on uh. These were the four ones. I just thought it was worthwhile to talk about their charts, but just so you guys know i’m bullish on pretty much all of them. With that being said, i would love to know your opinions on your favorite eevee stop what’s, going on with the eevee sector as a whole. Right now, are you bullish bearish? What is your favorite evie stock? I would love to know in a comment below don’t forget. If you haven’t already, you can join up with the moon gang by hitting the subscribe button and there’s also a link to the moon gang discord.