Nikola (NASDAQ:NKLA) Posing Signs of a Bearish Trend

Investors are punishing Nikola (NASDAQ:NKLA) today, plunging the stock below $1 per share. A company announcement has investors losing confidence in the electric heavy-truck maker's chances for survival. The stock plummeted 23.5% in early trading before settling in with a decline of 17.6% as of 10:40 a.m. ET.

The drop is due to Nikola's latest announcement that it is seeking to raise more money through new offerings of both common stock and convertible senior notes. The company expects to raise $100 million through the stock sale and another $200 million from the sale of convertible bonds.

Technical Analysis
The 50-day moving average is acting as a resistance level, as NKLA has failed to break above it several times in the past few months. The 200-day moving average is also sloping downward, suggesting a long-term downtrend.

The 50-day Moving Average crosses the 200-day moving average moving beneath the 200 & 100- day moving averages respectively posing signs of a Bearish movement on Nikola Stock.
Based on these indicators, NKLA is showing a bearish trend with some bullish momentum.