NKLA appears to be printing a double three primary WXY. I have labelled it "exotic" because the more common X wave triangle appears to be collapsing before intermediate E wave completion, however it does appear to be a "corrective structure" and so should be correct nonetheless.
I have shown 2 Fibonacci bands constructed from multiple trend based extensions from significant pivots. In the first band there is plenty of interaction with price finding support, resistance and reversal points at these Fibonacci points.
The second band if correct will provide the target area for the next impulsive Y wave down with the most important being the primary 1:1 target @ $1.95.
Regarding the primary X wave; perhaps would have formed a more common flat bottom descending triangle had it not been for the very bearish price action of NDX overlaid. The "support" horizontal provides the lower trendline of the triangle. On the 18th January NDX had a very bearish week and that has been reflected in NKLA PA that fell out of the triangle area on that day. From there the potential E wave bounced and almost hit the upper trendline despite the fall. This seems to indicate this is still the corrective X of the potential double three.
At some point until the apex of the triangle I will be looking for NKLA to break to the downside to enter the primary Y wave down to the second band.
Its worth noting that NKLA fast and very impulsive bullish phase came immediately following NDX previous crash bottom and NKLA wave 1 actually began during the crash on an NDX retracement bounce! This could make NKLA an interesting buy on any significant NDX bounce if it did happen to be in the desired Fibonacci band at that time.
TSLA also added to the chart for awareness however it has simply been moving correctively with NDX. Both look ripe for a crash and this adds cause to NKLA heading much lower. That said, NKLA has been in a deep bear market for quite a while now and so it may have a good pop whenever NDX and TSLA bounce. It may even be a bottom perhaps.
It is a risky name to buy but if all of this plays out then I think NKLA should at the very least see a phi related bounce up to 0.618 area and probably some overshoot which could approximately see a 1400% move up to around $30.
High implied volatility (IV) in a crash to around the $2 could also provide an opportunity to sell LEAP puts that if put to me, I would own NKLA at expiration for $2 minus option premium. If it did bottom, bounce or even drift sideways in that area, IV contraction would reduce option value and assist my short puts to expire worthless.
Not advice.
I have shown 2 Fibonacci bands constructed from multiple trend based extensions from significant pivots. In the first band there is plenty of interaction with price finding support, resistance and reversal points at these Fibonacci points.
The second band if correct will provide the target area for the next impulsive Y wave down with the most important being the primary 1:1 target @ $1.95.
Regarding the primary X wave; perhaps would have formed a more common flat bottom descending triangle had it not been for the very bearish price action of NDX overlaid. The "support" horizontal provides the lower trendline of the triangle. On the 18th January NDX had a very bearish week and that has been reflected in NKLA PA that fell out of the triangle area on that day. From there the potential E wave bounced and almost hit the upper trendline despite the fall. This seems to indicate this is still the corrective X of the potential double three.
At some point until the apex of the triangle I will be looking for NKLA to break to the downside to enter the primary Y wave down to the second band.
Its worth noting that NKLA fast and very impulsive bullish phase came immediately following NDX previous crash bottom and NKLA wave 1 actually began during the crash on an NDX retracement bounce! This could make NKLA an interesting buy on any significant NDX bounce if it did happen to be in the desired Fibonacci band at that time.
TSLA also added to the chart for awareness however it has simply been moving correctively with NDX. Both look ripe for a crash and this adds cause to NKLA heading much lower. That said, NKLA has been in a deep bear market for quite a while now and so it may have a good pop whenever NDX and TSLA bounce. It may even be a bottom perhaps.
It is a risky name to buy but if all of this plays out then I think NKLA should at the very least see a phi related bounce up to 0.618 area and probably some overshoot which could approximately see a 1400% move up to around $30.
High implied volatility (IV) in a crash to around the $2 could also provide an opportunity to sell LEAP puts that if put to me, I would own NKLA at expiration for $2 minus option premium. If it did bottom, bounce or even drift sideways in that area, IV contraction would reduce option value and assist my short puts to expire worthless.
Not advice.
Comment:
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Comment:
On target.
Comment:
Rejecting below channel. Not too far away now.
Comment:
This worked well.
Comment:
1 year after I first said NKLA would hit $2 here we are at my $1.95 target. Press play to see that what I described did happen - NKLA became impulsive between the Fibonacci bands 👍🏻.
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Priority trades, round the clock updates and a 1 hour technical video per week 😼.
Get the "heads up" at critical moments - don't lose your shirt.
$50 per month 👍🏻.
Contact: t.me/dRends35
