I have been doing this for nearly 25 years and I try to keep it simple. I look for two things:
1) a catalyst that can send the stock higher or lower and 2) a high potential technical signal
Catalyst NKLA is in the EV space and right now there is a ton of money flowing into this space. They also have a watered-down deal with GM who has just announced they are going full throttle in electric vehicles. This alone should send the stock higher.
Technical 7-day MA average crossed over signaling a buy and I am targeting a move above the 200-day MA to $25 (representing approx. a 17% move). At that point you can close the position outright or take half off and let the rest ride.
Trade closed: target reached
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I will be closing half the position and let the profit ride for a while
Didnt gm back off from the deal ? Nkla is being critisised everywhere
mxc111
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@TrackNorris, GM did back off the original deal - they renegotiated the deal but it is is quite watered down. Nevertheless I believe they said they may be open to something more meaningful down the road.
Chartguru1
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The weekly chart....the MACD crossover will get my attention. Kudos on ur charting
mxc111
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@Chartguru1, Thank you. I will look at the MACD looks interesting