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- 1 Nikola stock price (NASDAQ: NKLA) rose 35% last week.
- 2 NKLA stock price defended $1.00 and showed a decent bounce.
- 3 Nikola Corporation stock price is trying to climb above the 50-day EMA.
Nikola Corporation NKLA stock price rose approximately 35% in the previous week. The recent upmove seems to be a short squeeze rally so more upside is likely.
Nikola stock price attempted to break out of the 50-day EMA to reverse the short-term trend. But the attempt was not successful yet and the confirmation of the trend reversal is still awaited.
NKLA stock price did not perform well last month and disappointed the expectations of the investors. It faced sharp rejection from $3.71 and the price began to decline by forming lower lows.
In mid-August, Nikola share price dropped below the 50-day EMA which invited further decline. Gradually, the NKLA stock declined and eroded complete gains generated in June and July.
On a higher time frame, Nikola stock price formed a double-top bearish pattern. It shows that the sellers are active and continuing their dominance on the higher levels.
Recently, the massive surge in the trading volume is visible indicating that the speculative activities are high. Nikola stock price closed the previous session at $1.25 with an intraday decline of -3.85%.
Will NKLA Stock Price Get Doubled From Current Levels?
NKLA stock price showed a surprising recovery from the lower levels. It seems that short sellers are exiting the previous short positions. Therefore, it lacks genuine buying and it will be difficult to hold the price at higher levels.
Till NKLA stock price trades below $2.00, the price is expected to remain in the bears’ grip. However, the price has corrected a lot so it is likely to spend some time in consolidation before deciding on further direction.
The technical analysis suggests that Nikola stock price is reversing upward until it breaks $2.00 and sustains higher levels. Investors should avoid creating any positions.
Nikola Stock Price Analysis on Weekly Time Frame
Nikola stock price is forming a bearish hammer candle in the current week. It shows that sellers are active and it will be difficult for the bulls to reverse the trend. The broader market indices are also turning mild bearish which is negatively impacting the NKLA stock.
The MACD curve generates a positive crossover and rises upward. It indicates that the price may trade with a mildly bullish bias for a short period of time. The RSI at 46 denotes price is near the neutral zone.
Conclusion
Nikola Corporation NKLA stock price rose approximately 35% last week. It defended the $1.00 level and witnessed a short covering rally. The analysis suggests that Nikola stock price might test $2.00 but will face difficulty in holding the higher level.
Technical Levels
- Resistance levels: $2.00 and $2.50
- Support levels: $1.00 and $0.8000
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
