NKLA Long entry , market sentiment based I don't really like the company too much but I think the sentiment is turning positive and technicals look acceptable to take a starter .
Good Luck ~
NKLAQ trade ideas
Nikola signals to break-outNikola has performed as a young crypto coin from May till June last year, has had a 85% retracement, but has broken out the yellow descending wedge and has touched an old high of March 2020. We had an sudden rise after first break-out before the announcement of GM, but an abrupt decline right after the cancellation of the electric truck production and 11% stake in the company, which brought Nikola even below the 20 usd. Though, we should go up again and if we break 25 usd, this should be a go. On the other hand we could have a flatliner and a continuation which we know with crypto and this could interlude a longer correction and winter for the EV market. Tesla looks to be nearing a turning point as well.. Let's wait and see. Though a very good entry point for Nikola.
Nikola - Fugazi or Fugaizi , lets break it downNikola
This stock goes to show that at the market anything can happen and fundamentals and technical analysis just don’t matter ! let me explain.
What ever analysis you try implementing on NKLA chart you will receive no logic , no cycle, barely any resistance and support levels, and hardly the ability to analyze the price action movement according to any past movement -and that is for one reason only – SENTIMENT analysis!
One of the more significant analysis in the world of stocks that is simply not mentioned enough.
NKLA was not directly IPO’d and was traded under VTIQ (VectolQ acquisitions) and reached a market value of nearly 12 billion on mid May -why – “hot air” as I like to call it.
Factory was fake, the truck they used was not even driving but was rolling down a hill, and the previous CEO was just a pure salesman, and a damn good one.
Stock jumped several times as seen on chart purely on expectation and hype without completing one single vehicle, yet its traded from 25$ to 18$ in the last month in hope of a deal to be made with GM Motors which also isn’t even close to finalizing.
GM Motors will be the exclusive supplier of fuel cells for Nikola class 7/8 trucks along with receiving 2 billion equity stakes in Nikola, in return they will basically build the Nikola Badger model for both electric and fuel cell vehicle.
This stock moves on sentiment and sentiment only -no technical analysis applied whatsoever.
If I had to invest I rather invest in my neighbors daughter lemonade stand before buying this stock as an investment, that being said I would flip it though!
If this deal goes through, which doesn’t seem at the moment, the stock will make another guest star appearance on top winners in the screeners, but other then that its dead in the water!
This is not an investment advice , just our personal opinion at fatdogoestrading team
Trade safe!
SPACs year in review: NKLA, SNOW, ABNB, AI, XL, GOEV, QS, LAZR..SPACs year in review: NKLA, SNOW, ABNB, AI, XL, GOEV, QS, LAZR, FSR, DKNG, RIDE, DASH
Do your own due diligence, your risk is 100% your responsibility. You win some or you learn some. Consider being charitable with some of your profit to help humankind. Small incremental steps work : If you double a penny a day for a month it = $5,368,709. Good luck and happy trading friends...
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I'm About To Buy Some NKLALet me be clear: I'm not bullish on NKLA. In fact, I don't think it's a good company at all. Companies with drawings of electric vehicles and fully staffed IR departments don't often add up to solid fundamentals and real revenue. That said, this isn't a fundamental play - it's based on some of the market mechanics I think are happening under the hood.
First: NKLA just busted through an extremely important long term price level at $16.15, then sold off hard a further 15% - making the company extremely oversold in the short term. Just on a technical basis, I would be a buyer somewhere around here in expectation of a short lived price pop.
However: I think NKLA has become an "obvious" short term short play for big and small money alike. When that happens, I like to be on the other side of it, just in case a squeeze occurs and my shares turn into a cheap call option in the event that the stock moves back into the 30's and 40's. Obvious technical breaks like the one at 16.15 can often be traps, suckering in newbie traders into shorting. That dynamic could occur, or the company could start to show some real revenue in the short to medium term. If the company's plans actually pan out, then this is a good price to get involved. Plus, you get the "EV" premium that's touching all of these companies. I think the risk reward down here for a short to medium term trade is very low.
Cheers!
Could Nikola follow like SNAPAfter a huge selloff, new companies can bounce back very strongly. I held TSLA when it was in its 30s and SNAP when it was $11.
Nikola is shaping this way too for a big run-up potential and is in my radar. However it has to pull up above $20 level first to confirm this path (not a buy yet at this point). So watch this stock carefully in coming months. This can drive up to $180. Do this as a long term investment.
(NKLA) Nikola continues to crumbleNikola NASDAQ:NKLA has terminated a contract to deliver 2,500 electric-battery trucks to Arizona-based Republic Services Inc, (Wikipedia) which "is the second largest provider of non-hazardous solid waste collection, transfer, disposal, recycling, and energy services in the United States, as measured by revenue." This was an agreement made in August 2020.
The upside is, NIkola can better focus on production of both its battery-electric and hydrogen fuel cell semi-trucks. But will it happen?
Refs:
www.bloomberg.com
finance.yahoo.com
techcrunch.com
Nikola at a critical Support zone!The three Blue, Light Blue, Red zones, Date back to April and May 2020. These are critical zones.
Currently, the market is reacting technically Bullish to the support zones, little resistance is seen.
RSI Divergence is doing well + The oversold indication.
Several Price Action Indicators and RSI and S/R lines give a great bullish sentiment.
Nikola, diamond reversal pattern?? All moving averages on every time fram have crossed negative. Can the bulls take it from here? Possible short squeeze. The lowest I could see it coming is 14.55 before pattern breakout if it continues down this falling wedge ...should only be a day or 2 left before we find out which direction.
Nikola bullish or bearish? Obviously nikola is hates, is in a clear down trend, and hard to belive it could ever come back. It was in a massive pattern, had a fake breakout from 17.25-30$ weekly EMA then bad news came out along wirh a TD9 flash the day prior and crashed back down. I played from 17$-27$ and sold. I am looking for a potential play here that could go south but I have a stomach of steel. Bullish divergents on the daily, if this wants to get back into the pattern and breakout, this falling wedge could breakout to 21.70 $. A break down could be to 8$. Your choice. Keep an eye could be a secret play here...no one wants to long nikola, possible short squeeze in coming
NKLA Market Makers Behavior HypothesisFrom the behavior of NKLA since it was exposed as a scam in September, it has appeared to hit certain price floors and then stop. For such a volatile stock with huge questions of its legitimacy and ability to remain an ongoing concern, it is striking that the price would sit within a narrow channel for weeks.
Some have theorized that MMs are actively buying and selling within price channels to keep the price from plummeting. They would be doing this so they, their wealthy customers, and the company insiders can exit in an orderly fashion, without alerting the unwashed masses that the house is on fire. This orderly exit keeps the price up while the large blocks are slowly sold off to unsuspecting retail investors.
Additionally, the MMs can sell options contracts for BOTH puts and calls, hedging their risk while taking in large insurance premiums due to the stock's inherent IV, which has run 150-200% for months. By holding it steady, they expire out short contracts.
I believe I've found a pattern in the data. There are 4 periods of unusually calm prices, each running about 7-10 days and holding prices of 24, 22 and 18. There was a runup on the GM deal/no-deal around 12/1, but that dropped back down to the 18 level, again without continuing to drop, but hitting that 18 floor.
If this pattern holds, the floor drops to 16 next week, but it could go to 14 or 12, and then will hold for 7-10 days.
Nikola (NKLA): A Long Ways DownNKLA (18.59/share at the time of this writing)
NASDAQ:NKLA
In my humble non-expert opinion, Nikola has a long way down to go. I'm not hating on Nikola. In fact I think they're truck designs looks cool but...captain obvious may tell you that this is a no-brainer, and from a business standpoint I agree. I see no potential based on what the company has to offer as of today. The original deal with GM was "revised" AKA downgraded. That deal was worth $2 billion. The original deal already had me scratching my head. The revised deal still has me wondering what Nikola has to offer as a business.
The original deal:
GM provides fuel-cell technology to Nikola
GM manufactures Badger (pickup truck) for Nikola
GM takes 11% stake in Nikola in return for above services
The revised deal:
GM provides fuel-cell technology to Nikola
GM gets paid in cash?
Based on what Nikola has to offer, there is no reason for Nikola to have any value. What is their competitive advantage? What value is being created? Are they simply marketers? They need to come up with something. From what we first learned in the Hindenburg Report, they don't actually have any proprietary technology that is solely owned by Nikola. It's all third-party agreements. Seems like Trevor Milton is trying to become the Steve Jobs of EVs but without any of the proprietary Apple technology. He's charismatic and I guess he brings ideas together...? So what's left?
Comments are welcomed. If you're still holding Nikola, why? And if you're not holding anymore, why not?
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You could argue that NIO is in the same boat since they also have a mega manufacturer (JAC Motors) creating vehicles for them. But there are key differences.
1. JAC Motors is state-owned. The Chinese government has every incentive to prop up their own EV companies even if they're friendly with US-based Tesla. They're not going to snub home-grown competition.
2. The Chinese government has committed to making all automobiles sold in China "eco-friendly" by 2035. Again, homegrown EVs have an advantage.
3. Nio has functional vehicles that run on electric batteries (not downhill gravity).
4. Nio has sales.
5. Prior to its 2020 pop, Nio had a dedicated fanbase to which they created Nio Clubhouses for (to cultivate and grow its cult).
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Refs:
www.wsj.com
www.wsj.com
asia.nikkei.com
hindenburgresearch.com
www.azcentral.com
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Disclaimer: This is my non-expert opinion and not financial advice.
