To The Moon

The Nikola stock price fell by -22.96% on Monday, 21st Aug 2023 from $1.96 to $1.51. During the last trading day the stock fluctuated 21.09% from a day low at $1.47 to a day high of $1.78. The price has fallen in 6 of the last 10 days and is down by -36.82% for this period. Volume has increased on the last day by 47 million shares but on falling prices. This may be an early warning and the risk will be increased slightly over the next couple of days. In total, 101 million shares were bought and sold for approximately $151.96 million.

Given the current short-term trend, the stock is expected to rise 116.75% during the next 3 months and, with a 90% probability hold a price between $3.27 and $8.21 at the end of this 3-month period.

NKLA Signals & Forecast

There are few to no technical positive signals at the moment. The Nikola stock holds sell signals from both short and long-term Moving Averages giving a more negative forecast for the stock. Also, there is a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections up, there will be some resistance from the lines at $1.85 and $2.11. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Thursday, August 03, 2023, and so far it has fallen -55.52%. 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 rose on falling prices yesterday. This may be an early warning and the stock should be followed more closely.

Support, Risk & Stop-loss for Nikola stock

On the downside, the stock finds support just below today's level from accumulated volume at $1.40 and $1.38. There is a natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Nikola finds support just below today's level at $1.40. If this is broken, then the next support from accumulated volume will be at $1.38 and $1.19.

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 $0.310 between high and low, or 21.09%. For the last week, the stock has had daily average volatility of 13.66%.

Nikola is oversold on RSI14 (21). Some stocks may drop long and hard while being oversold on RSI before turning, which increases the general risk.

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 Tuesday 22nd

For the trading day on Tuesday, 22nd we expect Nikola Corporation to open at $1.59, and during the day (based on 14 day Average True Range), to move between $1.16 and $1.86, which gives a possible trading interval of +/-$0.348 (+/-23.06%) up or down from last closing price. If Nikola Corporation takes out the full calculated possible swing range there will be an estimated 46.12% move between the lowest and the highest trading price during the day.

Since the stock is closer to the support from accumulated volume at $1.40 (7.28%) than the resistance at $1.82 (20.53%), 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 12 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?

The Nikola stock holds several negative signals and despite the positive trend, we believe Nikola will perform weakly in the next couple of days or weeks. Therefore, we hold a negative evaluation of this stock.