- Nikola stock price follows a declining falling wedge pattern.
- Bears dragged the asset’s price to all-time lows again this week.
Nikola stock price has been trading lower so far after slipping below the ideologically low level of $10. The bears placed huge sell orders after the break above this key volatility zone. Bears continue to receive higher price rejection by short-sellers, resulting in the asset’s price action making lower-highs so far.
The US stock market fell in the first trading session of the new year. In the act, because of Apple and energy stocks. Similarly, on Tuesday, January 03, Wall Street’s major indices closed in the red. Meanwhile, the Dow Jones was down 0.03%, the S&P 500 was down 0.40% and the Nasdaq was down 0.76% at 10,386.
The price structure of NASDAQ: Nikola corporation forms lower-lows and lower-highs since its all-time high. In June, short-sellers found robust selling opportunity as Nikola stock price reflected double top formation just below the $20 resistance. Later on, bears started dominating it into the falling wedge pattern, which kept asset price at all-time low of $2.01-support level.
Trading volume observes lower than average line, as per last night’s data of 9.98 million. Volatility is gradually decreasing, and buyers can set their feet for standing over here. On 03 January, traders found long-legged Doji candles on a daily basis. This bullish sign can lead Nikola stock price recovery ahead until the resistance line of bearish pattern.
On the daily price chart, the RSI indicator is showing a slight positive sign as it remains above the support line (blue). At that point, the RSI peaked at 43 – close to the halfway mark. Above this volatile zone, buyers can aggressively accumulate Nicola stock as the ADX gradually declines, showing lower price volatility in the market. Moreover, the MACD is about to leave the negative zone soon.
NASDAQ: Nikola stock price is right above all time low but at the same time volatility is reduced. The RSI and MACD indicators support the upward momentum but the bulls need to push the asset’s price above the previous swing high.
Support level – $2.0
Resistance level – $4.0 and $30
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.