The EV rally? Where has EV recently gone, seems like everyone thought that EV stocks would go to the moon after governor Newsom announced that he will aggressively move the state further away from its reliance on climate change by issuing an executive order requiring sales of all new passenger vehicles to be zero-emission by 2035 and additional measures to eliminate harmful emissions from the transportation sector. That gave NKLA a 134% boost within a month and shortly after it has been in a spiral downtrend. Very interesting all that time all price did was go from levels of Market Profile Demand and Supply to bearish continuation patterns. After 5 months of price continuing downward a very well known pattern has finally shown up, an oldie but goodie "W formation, BULLISH REVERSAL PATTERN or Double Bottom". For those who have never heard of it, it is one of the most known patterns and I have displayed a picture on the ellipse that illustrates how it looks. This pattern consists of a price entry from above with support at the bottom, followed by price hitting its head on resistance just to come back towards the level of support (creating a double bottom), where price finally rallies and breaks out, followed by a throwback WHICH IS WHERE PRICE IS CURRENTLY AT IN NIKOLA, and finally the continuation phase to the upside. The more candlestick or western indicators that merge together at the same support the more likely a reversal. That is what is currently occurring with Nikola. So many indicators have merge together giving MAJOR CONFLUENCES. Indicating to me that I must be BULLISH. Bought $30 LEAPS for 2$ bucks, this is a major LOTTO play. Manage your own risk and do not risk more than you can afford.
Comment:
NKLA is breaking $14.15 R without any issues intraday. If this continues and closes above this price level, probability of a bigger move will come. I am looking for a massive moveout to close above this R level confirmed with major volume. This will confirm demand is back for this stock. $30$ LEAPS are already up 60%+. Not closing any position but moved my stop to a B.E. This is now a free trade with plenty of time to be right.
Trade active:
CLOSED HAVE POSITION FOR 200% ROI. LEAVING A FEW RUNNERS, STILL HAS PLENTY OF TIME VALUE AND CAN BE ITM IN THE NEXT FEW DAYS/WEEKS SPECIALLY IF MOMENTUM CONTINUES TO PICK UP.