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- 1 NKLA stock price struggles to sustain the $1.00 level.
- 2 Nikola Corp. stock price continues to trade below the 50-day and 200-day EMA.
- 3 Nikola Corporation is expected to report Quarterly earnings on November 2, 2023.
Nikola Corporation, NKLA stock price fell approximately 35% in the current month and eroded the previous gains. It faces rejection from the $1.70 and prices begin to decline by forming lower low swings.
Nikola stock price is trading below the 50-day and 200-day EMA showcasing that the trend is in a downward direction. However, the current price looks oversold and trading far away from EMA. So a short-term pullback to the EMA is possible.
In August, NKLA stock price tried to break out of the $3.50 hurdle but the attempt failed and prices faced sharp rejection. During the downfall, the company released the previous quarter’s earnings which further fueled the downward momentum.
Nikola’s share price continued to decline and eroded a big portion of the market capitalization.
In the mid of September, sellers tried to drag the NKLA price below $1.00 to hit new lows. However, short sellers panicked and chose to book their profits due to which a short covering rally triggered and prices regained $1.00.
At present, sellers are again getting active and seem to be preparing for the next attempt at the breakdown. NKLA stock price closed the previous session at $1.02 with a one-day decline of -3.77%.
Will NKLA Stock Price Show Pull Back Rally Soon?
NKLA stock price is in the correction phase and sellers seem more active as compared to buyers.
Nikola Corporation is expected to report its next earnings on November 2, 2023. Equity analysts estimated an EPS of -0.142 and revenue of $12.324 Million.
If Nikola Corp. succeeds in beating the EPS or revenue estimates then it will increase the probability of the short squeeze. Moreover, NKLA stock price might react violently after earnings which also increases the possibility of the fake breakout and breakdown.
The analysis suggests that if the stock price trades below $1.70 the pullback will be considered as a bull trap.
Nikola Stock Price Bearish on Multiple Time Frames
Nikola’s stock price is displaying a bearish pattern on multiple time frames. The bears continue their dominance on the higher levels and keep on rejecting the price.
Quarterly earnings are near so it will be interesting to see whether the buyers are able to defend the previous lows or not.
The MACD curve slopes downward and the histogram bar is red shows bearish momentum might continue. The RSI 35 slopes down denotes weakness but if the price declines more the RSI might enter oversold territory.
Conclusion
Nikola Corporation, NKLA stock price fell 35% in the current month but still no signs of recovery are visible.
Quarterly earnings are near so volatility in the stock may rise in coming weeks. Therefore, Investors and traders should be careful before building up positions on either side.
Technical levels
- Resistance levels: $1.70 and $2.00
- Support levels: $0.8000 and $0.5211
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.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
