High volatility in Nikola stock price on Monday which ended trading at $1.40

The Nikola stock price gained 11.60% on the last trading day (Monday, 25th Sep 2023), rising from $1.25 to $1.40. During the last trading day the stock fluctuated 20.00% from a day low at $1.20 to a day high of $1.44. The price has been going up and down for this period, and there has been a 53.8% gain for the last 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 9 million more shares were traded than the day before. In total, 82 million shares were bought and sold for approximately $114.01 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 middle of a very wide and falling trend in the short term and further fall within the trend is signaled.Given the current short-term trend, the stock is expected to fall -19.22% during the next 3 months and, with a 90% probability hold a price between $0.314 and $2.41 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 $1.45. On a fall, the stock will find some support from the short-term average at $1.38. 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 -58.91%. Further fall is indicated until a new bottom pivot has been found.

On the downside, the stock finds support just below today's level from accumulated volume at $1.30 and $1.19.There is a natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Nikola finds support just below today's level at $1.30. If this is broken, then the next support from accumulated volume will be at $1.19 and $1.15.

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 $0.240 between high and low, or 20.00%. For the last week, the stock has had daily average volatility of 16.84%.

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.We have upgraded our analysis conclusion for this stock since the last evaluation from a Strong Sell to a Sell candidate.