High volatility in Nikola stock price on Friday which ended trading at $1.19

The Nikola stock price gained 3.48% on the last trading day (Friday, 15th Sep 2023), rising from $1.15 to $1.19. During the last trading day the stock fluctuated 20.00% from a day low at $1.15 to a day high of $1.38. The price has fallen in 5 of the last 10 days but is still up by 0.85% over the past 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 40 million more shares were traded than the day before. In total, 269 million shares were bought and sold for approximately $319.95 million.

On Sep 14, 2022, it was reported that B. Riley gave NKLA a "Buy" grade with a "initialise" action.

The stock lies in the lower of a very wide and falling trend in the short term, and this may normally pose a very good buying opportunity. If the lower trend floor at $0.743 is broken, it will firstly indicate a stronger fall rate.Given the current short-term trend, the stock is expected to fall -10.79% during the next 3 months and, with a 90% probability hold a price between $0.663 and $2.86 at the end of this 3-month period.

Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume is rising along with the price. This is considered to be a good technical signal. Some negative signals were issued as well, and these may have some influence on the near short-term development. The Nikola stock holds a buy signal from the short-term Moving Average; at the same time, however, the long-term average holds a general sell signal. Since the longterm average is above the short-term average there is a general sell signal in the stock giving a more negative forecast for the stock. On further gains, the stock will meet resistance from the long-term Moving Average at $1.69. On a fall, the stock will find some support from the short-term average at $0.99. A break-up through the long-term average will give another buy signal, while a fall below the short-term average will add another sell signal and strengthen the general signal. A sell signal was issued from a pivot top point on Thursday, August 03, 2023, and so far it has fallen -64.95%. Further fall is indicated until a new bottom pivot has been found.

Nikola finds support from accumulated volume at $1.15 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

This stock may move very much during the day (volatility) and with a very large prediction interval from the Bollinger Band this stock is considered to be "very high risk". During the last day, the stock moved $0.230 between high and low, or 20.00%. For the last week, the stock has had daily average volatility of 18.15%.

Nikola holds several negative signals and we believe that it will still perform weakly in the next couple of days or weeks. We, therefore, hold a negative evaluation of this stock.