2 Downtrending EV Stocks Looking To Make A Comeback

Nikola Corp. NKLA and Lordstown Motor Corp. RIDE are a couple of EV stocks looking to break the downtrend that the companies are in.

Nikola Daily Chart Analysis: The chart above shows Nikola is forming what technical traders may call a “descending triangle” pattern.

The line of support happens near $10 in the pattern for Nikola. This is an area the stock was previously holding as resistance before it broke out. The stock then tested this area as support.

Resistance comes from the line that connects all of the highs on the chart together. The downward sloping line connecting the highs shows the downtrend.

The stock is below the 200-day moving average (blue), indicating the stock has been trading with bearish sentiment recently. The indicator may hold as resistance in the future.

See also: How to Buy Electric Vehicle (EV) Stocks

What’s Next For Nikola: Bullish traders would like to see the stock cross above the downward sloping resistance line for a potential change in trend.

Bearish traders would like to see the stock fall below the $10 support for a potential strong further downwards move.

Lordstown Motors Daily Chart Analysis: The daily chart above shows Lordstown Motors stock is trading in a channel and looks to be possibly bouncing near support.

The stock is trading in a channel between the prices of $11 and $30. The stock fell to the $11 support where it was able to bounce up. The stock is now looking to make higher lows and start an uptrend towards the resistance line.

The stock is trading below the 200-day moving average (blue), indicating sentiment for the past year is bearish. This indicator may hold as a potential area of resistance in the future.

What's Next For Lordstown Motors: Bullish technical traders would like to see the stock start to build higher lows and climb towards the resistance line.

Bearish technical traders would like to see the stock fall through the support level. If this level is able to hold as resistance and cannot get back above $11, it may see a further downwards move.