The Nikola $Nikola Corporation(NKLA)$ stock price gained 4.81% on Friday, 18th Aug 2023, rising from $1.87 to $1.96. During the last trading day the stock fluctuated 16.37% from a day low at $1.71 to a day high of $1.99. The price has fallen in 6 of the last 10 days and is down by -21.6% for this period. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 24 million more shares were traded than the day before. In total, 53 million shares were bought and sold for approximately $104.27 million.
The stock lies in the lower part of a very wide and strong rising trend in the short term, and this may normally pose a very good buying opportunity. If the lower trend floor at $1.90 is broken, it will firstly indicate a slower rate of rising, but may also be an early warning for a trend shift. Given the current short-term trend, the stock is expected to rise 128.91% during the next 3 months and, with a 90% probability hold a price between $4.36 and $8.63 at the end of this 3-month period.
NKLA Signals & Forecast
There are mixed signals in the stock today. The Nikola stock holds a buy signal from the short-term Moving Average; at the same time, however, the long-term average holds a general sell signal. Since the longterm average is above the short-term average there is a general sell signal in the stock giving a more negative forecast for the stock. On further gains, the stock will meet resistance from the long-term Moving Average at $2.11. On a fall, the stock will find some support from the short-term average at $1.92. A break-up through the long-term average will give another buy signal, while a fall below the short-term average will add another sell signal and strengthen the general signal. A sell signal was issued from a pivot top point on Thursday, August 03, 2023, and so far it has fallen -42.27%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). Volume is rising along with the price. This is considered to be a good technical signal.
Support, Risk & Stop-loss for Nikola stock
Nikola finds support from accumulated volume at $1.95 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
This stock may move very much during the day (volatility) and with a very large prediction interval from the Bollinger Band this stock is considered to be "very high risk". During the last day, the stock moved $0.280 between high and low, or 16.37%. For the last week, the stock has had daily average volatility of 13.09%.
Our recommended stop-loss: We hold a negative evaluation for this stock. No stop-loss is set.
Trading Expectations (NKLA) For The Trading Day Of Monday 21st
For the trading day on Monday, 21st we expect Nikola Corporation to open at $1.89, and during the day (based on 14 day Average True Range), to move between $1.62 and $2.30, which gives a possible trading interval of +/-$0.337 (+/-17.21%) up or down from last closing price. If Nikola Corporation takes out the full calculated possible swing range there will be an estimated 34.42% move between the lowest and the highest trading price during the day.
Since the stock is closer to the support from accumulated volume at $1.95 (0.51%) than the resistance at $2.22 (13.27%), our systems sees the trading risk/reward intra-day as attractive and believe profit can be made before the stock reaches first resistance..
Insiders are negative selling more shares than they are buying in Nikola
In the last 100 trades there were 2.45 million shares bought and 4.95 million shares sold. The last trade was made 11 days ago by Mendes Carey who sold 3.72 thousand shares. In general the insiders are selling more stocks than they buy. There can be a variety of reasons for this, but in general it can be considered as a negative signal.
Is Nikola Corporation stock A Buy?
Nikola holds several negative signals and we believe that it will still perform weakly in the next couple of days or weeks. We, therefore, hold a negative evaluation of this stock.
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