On Tuesday, Nikola stock price turned green after falling consecutively in the last two trading sessions. The shares of the commercial EV manufacturer have slid 16.7% after retesting the 200 MA level. At press time, the stock of Nikola Corporation was priced at $1.45 and gained 2.84% in the daily time frame.
The overall market sentiment in the US stock market remained somewhat negative today. This is due to the high likelihood of interest rates remaining high in the near future. The prolonged tightening cycle has triggered a sell-off in the US equities. At the time of writing, the NASDAQ 100 index is down 1.55%, while the S&P 500 index lost 52 points on Tuesday.
Last week, Nikola Corporation dropped the curtains on its first hydrogen fuel cell electric vehicle. A tour and Q&A session was also conducted regarding hydrogen safety, the HYLA ecosystem, and the Nikola human-machine interface system. The company also reiterated its aim to be the pioneer in the hydrogen refueling ecosystem in the future.
Earlier, Nikola also announced Joseph S. Cappello and Mary Chan as its president and new chief operating officer, respectively. Side by side, the electric truck manufacturer also signed an exclusive deal with ITD Industries, which will become the first dealer of Nikola Class 8 EV trucks in Canada. Despite these developments, Nikola stock price remains in a slump on a higher timeframe.
Currently, NASDAQ: NKLA is struggling to break above the 200 MA. It has received multiple rejections from the same level in the last couple of weeks. The stock is currently trading 63% below its yearly peak. Earlier this year, the price broke out of the long-term falling wedge pattern. However, the bulls lost momentum, and the price is now facing another correction.
My Nikola stock price forecast will flip bullish provided the price gains strength above the 200 MA. In this case, another retest of $3.75 resistance could be on the cards in the coming months. However, an invalidation of this bullish outlook will be the breakdown below the $0.85 support level.
In the meantime, I’ll keep sharing the updated outlook on tech stocks and my personal trades on Twitter, where you are welcome to follow me.
This post was last modified on Oct 03, 2023, 20:03 BST 20:03