Nikola Corp. stock price is witnessing an accumulation of over 20 days near the 50-day EMA. The NKLA stock price indicated signs of bullishness when the price bounced back from the $0.87 level. The bulls seem to have successfully defended the $1 level and are trying to gain control in the short term.
The price trend analysis demonstrates that the Nikola share price had been in a three-year declining trend and wiped out over 95% of its value in this time period.
Moreover, the last two quarters have seen volatility in the price and the struggle of bulls to get into the game. The NKLA stock price bottomed out from a low of $0.52 and surged to a high of $3.71.
The bulls attempted to regain control and turn the trend in their favor. However, Bears dominated near the 200-day EMA and the stock couldn’t sustain more. The current quarter saw the decline to a low of $0.88 thus wiping out most of the gains.
Nikola Corp. engages in the design and manufacture of battery-electric and hydrogen-electric vehicles along with the vehicle components. Recently, the bulls have shown their commitment to defend the $1 level as the price hiked with momentum and currently shows accumulation near the 50-day EMA.
Currently, the price trend seems to be neutral to bullish. The breakout above the range may encourage more buyers to enter the market and the price may attempt to break above the 200-day EMA. The breakdown below the range might discourage the bulls and the price may decline to test lower levels.
Nikola stock derivatives data analysis states that the current implied volatility in the market is 138.96% with a decrement of 6.22% in the last trading session. The at-the-money strike price has 4,540 open contracts on the PUT side and 27,263 open contracts on the CALL side indicating the dominance of sellers at the CMP.
Nikola Stock Price Forecast For 2023
The average analyst price target for Nikola stock in 2023 is $2.70 which represents a potential upside of 88.81% from the current price. However, there is a wide range of analyst price targets between $1 to $5.
The most optimistic analysts believe that Nikola stock could reach $5 in 2023 if the global electric automobile industry grows strongly and the company is able to successfully launch new products.
Technical Indicators Signal Neutral To Bullish Momentum
The overall technical indicators including RSI and MACD opinion rating for the NKLA stock is a 32% “sell” with a weakest short-term outlook on maintaining the current trend.
Conclusion
Nikola stock is in a long-term downtrend but showing signs of bullishness near the 50-day EMA. The price bounced from $0.87 and defended the $1 level. The price may break out of the range and challenge the 200-day EMA.
Nikola makes electric and hydrogen vehicles along with its components. Analysts have a wide range of price targets for 2023, from $1 to $5. The highest target implies strong growth in the electric automobile industry and new product launches by Nikola. The average target is $2.70 with an 89% upside from the current price.
Technical Levels
- Support Levels: $1.20 and $0.86
- Resistance Levels: $1.64 and $2.81
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/10/11/nikola-stock-has-the-potential-to-reach-5-suggests-analysts/