Up and Coming Stock : Nikola Corporation (NKLA) -> $4 possible

There are some events which have contributed to this upside but more importantly I would like to look at further potential of Nikola going higher to $4 and above.

In this article, I would like to look at how Nikola would be performing over the next 3 days by using Technical Analysis.

Currently Nikola is in a Bear trend but it is worth noting that SMA50 is closing up to SMA200.

When price is above SMA200, normally is an indication of trend change to bullish. But we need SMA50 to be above SMA200 to see a bull trend.

I believe it will not be long before we see Nikola moving towards the bull trend.

RSI momentum has entered the Overbought region recently. This would indicate that traders might plan for a sell offs if this persist.

I would like to monitor the price and volume movement today (02 Aug 23) on whether there is any signs of heavy selling.

Nikola ADX value is above 50 which indicate a Strong trend. +DI is above -DI by a large margin, this normally suggest a Strong bullish upside movement.

I would take a cautious approach to monitor how Nikola would be trading over the next 3 days.

Nikola has actually gone through a bullish reversal in mid June. It has been on a nice strong bullish upside trend.

Looking at how the current price have moved, a potential reversal does not seem to appear anytime soon.

Based on what I have observed using technical indicators, Nikola look like it has potential of going higher than its current price.

But we also need to take note of the possibility of how the stock have been trading. There is a possibility of sell off by investors who has invested earlier.

Appreciate if you could share your thoughts in the comment section whether you think Nikola have potential of more upsides.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.