Nikola stock Price (NASDAQ: NKLA) surges 12% in a single day and formed a bullish reversal pattern. NKLA stock price breakout of the $3.00 hurdle level with a high volume shows the initial signs of a short covering rally.
Nikola stock price managed to climb above the 200-day EMA indicating buyers are trying their best to reverse the trend. However, the price is near the supply zone so the confirmation of the trend reversal is awaited.
In the mid of June, Nikola Corp took support near $1.00 and some buyers came forward to push the prices higher. Slowly and steadily prices climbed above the 50 EMA which turned the short-term trend in the favor of bulls.
NKLA Stock consolidated for some time in a narrow range and formed a short-term base. On July 13, 2023, NKLA share price witnessed a sudden rise and break out of the $2.00 hurdle.
Buyers succeed to hold the higher level and prices achieve another milestone of $3.00 a head of quarterly earnings. Nikola Stock price closed the previous session at $3.40 with an intraday rise of 12.42%. The market capitalization stands at $2.43 Billion.
Will Nikola Stock rise further or decline?
Nikola stock price (NASDAQ: NKLA) showed a surprising rally ahead of earnings. The recent up move is speculative or genuine buying will only be visible after the release of earnings.
Nikola Corp will release earnings today. Market analysts estimate an EPS of -0.22 and revenue estimate is $14.995 Million. If the company succeeds to meet the estimates then the stock price might show positive momentum.
However, if the company disappoints then stock price might fall toward $2.00. The technical analysis suggests, The recent up move in NKLA stock looks speculative and buyers will face to hold the higher level.
NKLA Stock Price Analysis on Weekly Time Frame
NKLA stock price rose 49% in the current week and formed a bullish candle. For the past few weeks, Nikola stock is in a bullish grip and speculative activities are also high. The next direction in the stock will be visible after the release of earnings.
The MACD curve displayed a positive crossover and the histogram bar is also green. It indicates the short-term strength of bulls. The RSI at 74 slopes upward and is likely to reach the overbought territory.
Conclusion
Nikola stock price (NASDAQ: NKLA) gained momentum ahead of quarterly earnings. The technical analysis suggests, the recent rally in NKLA stock is a bulls trap and prices will turn down.
Technical levels
- Resistance levels: $4.00and $4.50
- Support levels: $2.00 and $2.50
