Nikola Stock Sees A Strong Bounce Off Support: What's Next?

Nikola Corp NKLA shares are trading lower Monday morning from a premarket high of 4.5%. The stock looks to be making a jump higher once again after bouncing off a support level that has held in the past.

Nikola was down 0.32% at $11.06 Monday at publication.

See Also: How To Buy Nikola Stock

Nikola Daily Chart Analysis

• The past two days show a jump higher in price as the stock moves up away from the support level found near the $9 level. If the stock continues to push higher, it may eventually reach the resistance level near $20 where the stock has previously struggled to move above.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment and each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) saw a jump higher the past couple of days and now sits at 55. This shows that buyers have been moving into the stock and there is now more buying pressure than selling pressure.

What’s Next For Nikola?

Nikola is seeing a strong bounce after the price has stayed near support for the past few weeks, pushing up to $11 from the $9 support level in only a couple of days. Bulls are looking to see this be the start of an uptrend and are looking for higher lows to show the stock is continuing to see strength. Bears are looking to see the stock fall back lower and cross below the $9 support level. If the $9 mark can become an area of resistance, the stock could see a strong push lower once again in the future.