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- Nikola Stock Price (NASDAQ: NKLA) shot up 60% in a single day.
- NKLA Stock Price holds the 50 day EMA and tries to test the 200 day EMA.
- Nikola Corp Stock witnessed wild short squeeze.
Nikola Stock Price (NASDAQ: NKLA) surges 60% in a single day and break out of the $2.00 hurdle level. NKLA Stock formed a strong bullish candle which created a hope for bullish trend reversal.
Nikola Stock Price succeeded to climb above the 50 day EMA indicates that the short term trend has reversed. Well the 200 day EMA is placed slightly higher which might act as an immediate hurdle for the bulls.
Nikola Stock Price has disappointed the expectation of the long term investors. Previously, the stock was in a strong downtrend and declined by forming lower lows.
In the beginning June, The downfall halted near $0.5200 and prices showed a minor bounce. Later, it rallied 230% in the short span of time.
NKLA Stock witnessed profit booking from $1.52 and sellers tried to erode the previous gains. Luckily, the prices took support near the 50 day EMA and prices bounced back.
Nikola Stock witnessed a massive spike in the buying volume and prices also followed the same direction. Well if the prices failed to give the follow up momentum then it might be considered as a speculative spike.
Nikola Stock closed the previous sessions at $2.22 with an intraday rise of 60.87%. The market capitalization stands at $1.59 Billion.
Will the rally continue in Nikola Stock?
Nikola Stock Price showed a surprising recovery in the past two months. The buyers are active at lower levels but due poor financials they are likely to exit when momentum will be lost.
The recent up move in the stock is speculative and seems like it will lack the momentum soon. Till NKLA Stock Price holds the $1.52 level, the short term bulls will remain active. However, if the price drops below $$1.52 the sharp decline may trigger.
On the other hand, if buyers succeeded to break out of the $3.00 hurdle level then more upside will open. The technical analysis suggests, Nikola Stock is reversing upward but fresh buying is missing.
Will NKLA Stock test the YTD highs?
NKLA Stock Price trading near to the 3 months high and buyers might test the YTD in coming few sessions. The broader market index is on rise which improves the market sentiment and positively impacts prices of penny stocks.
The MACD curve displays a positive crossover and histogram bar is green indicates bullishness. Well if prices reverse down then the MACD curve will also reverse. The RSI curve at 77 sloping upward denotes strength of bulls. However, the curve is near to the overbought territory.
Conclusion
Nikola Stock Price (NASDAQ: NKLA) surges 60% in a single day. It created a hope for bullish trend reversal. The technical analysis suggests, The recent up move in NKLA stock is speculative and it will lack the momentum in coming weeks.
Technical levels
Resistance levels: $2.50 and $3.00
Support levels: $1.52 and $1.00
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.
