NKLA fair valueNKLA doesn´t seem to break the $3, I personally expect a high short interest at this level. My targets are based on the volume profile and historical data, see chart above. Shortby TradeandGrow7
$NASDAQ:NKLA High Tight FlagNASDAQ:NKLA Forming a High tight flag after a 100% bullish run. Waiting for an EMA8 confirmation.Longby nmatiga332
$NKLA Hindenburged Short SqueezeThanks to a new deal introduced on July 13, Nikola Corporation (NASDAQ: NKLA) experienced a short squeeze that helped the stock run nearly 116% last week. That said, the recent short squeeze may be a prelude to a substantial fall or even bankruptcy. In the meantime, NKLA is attempting to gain shareholders’ approval to raise its authorized shares in order to be able to raise capital by issuing new shares. With the company’s annual shareholders meeting set for August 3, shorting NKLA stock at current levels may prove to be a profitable decision as the results of the shareholders’ vote will see the stock fall drastically either due to the expected dilution or declaring bankruptcy. NKLA Fundamentals Financial Woes As is, NKLA is stuck between a rock and a hard place. Currently, the company has a dwindling cash balance that is not enough to pay off its current liabilities as it has a cash ratio less than 1 at .43. Moreover, it has a negative gross margin worth triple its revenues which indicates that the company is losing substantial amounts of cash for each vehicle it sells. At the same time, NKLA has an unsustainable cash burn rate as it burned $179 million in OCF in Q1 2023 and with $121.1 million in cash on hand, the company’s cash balance may not be enough to last the company another quarter. On that note, the company stated in its Q1 earnings that it is operating as a going concern which could see the company have a similar fate to Bed Bath & Beyond (OTC: BBBYQ) which declared bankruptcy a quarter following the introduction of going concern language in its earnings. The Only Escape From Bankruptcy That said, NKLA is looking to gain shareholders’ approval on a provision allowing it to double its authorized shares from 800 million to 1.6 billion to access the required funding it needs to continue its operations. According to the company’s Q1 earnings call, it has access to $243 million available under its share purchase agreement with Tumim and $200 million available on its ongoing ATM offering. However, the company is not able to issue shares to access this capital since its OS is nearly maxed out with 716.9 million shares outstanding out of the authorized 800 million. With that in mind, it appears that NKLA’s shareholders are not that enthusiastic about that provision since the company had to adjourn its annual meeting from June 6 to August 3 to ensure that the provision passes. The reason behind the company’s decision is due to an amendment to the Delaware General Corporation Law that is expected to be effective August 1. Once this amendment is effective the voting threshold to increase the company’s authorized shares would change from the majority of outstanding shares to the majority of shares actually voting on the provision. By doing so, the company’s management appears desperate to pass this provision which shows that NKLA’s outlook would be bleak without raising its AS. In case the provision passes, NKLA stock may plummet significantly due to the expected dilution the stock will witness. As things stand, NKLA stock is already overvalued as its Book Value Per Share (BVPS) is $.79 which is a far cry from the stock’s current PPS of around $2. On that note, if the provision passes, the stock’s BVPS would fall to $.34 – marking a downside of 56.9%. In this way, the stock should follow suit and decline by 56.9% at least considering that it is currently overvalued. Meanwhile, if shareholders do not approve the provision, bankruptcy may be NKLA’s only option to reorganize its business as its burn rate is unsustainable due to its dwindling cash balance. Risks Although taking a short position in NKLA stock may lead to substantial gains, investors should note that the stock is highly shorted with a short interest of 24% and 47.6% of its float on loan which makes it prone to short squeezes as shown by its latest parabolic run last week. For this reason, investors taking a short position in the stock should set a stop loss to hedge against the risk of short squeezes occurring. NKLA Financials One of the most alarming figures in NKLA’s financials is its cost of revenue, which was $44 million in Q1 2023 while realizing around $11 million in revenue. This discrepancy between revenues and cost of revenues resulted in a gross loss of $32.9 million and a jaw dropping gross margin of -296%. This imbalance has drastically strained the company’s assets as its total assets decreased QoQ from $1.23 billion to $1.15 billion, due to a sharp cash balance decrease from $233.4 million to $121.12 million. This sharp plummet is likely a result of NKLA’s gross loss and current liabilities of $276.5 million sapping its cash balance. Despite this, the company has done a tremendous job decreasing its current liabilities QoQ from $383.5 million due to declines in its accounts payable and accrued expenses. In this way, total liabilities dropped $710.1 million to $612.4 million. However, the company’s cash balance remains a fragment of its current liabilities even after accounting for its $10.6 million in restricted cash. In terms of revenue, NKLA experienced a substantial YoY increase from $1.88 million to $11.11 million which is due to the fact that it recorded no product revenue in Q1 2022. When it comes to expenses, NKLA experienced a significant decrease from $151.74 million to $118.13 million and is expected to experience another significant decrease in expenses due to its departure from Europe. It is still worth noting that any expenses accrued will have a negative effect on the company’s already weak balance sheet. When it comes to net loss, NKLA experienced a sharp spike from $152.94 million to $169 million due to the aforementioned reasons. Technical Analysis NKLA Stock is in a neutral trend and has recently entered a sideways channel between $2.09 and $2.8. Looking at the indicators, the stock is trading above the 200, 50, and 21 MAs which is a bullish sign. Meanwhile, the RSI is approaching overbought at 67 and the MACD is approaching a bullish crossover. As for its fundamentals, NKLA’s upcoming shareholders meeting on August 3 will be a major catalyst since it would either lead to bankruptcy or mass diluting the stock to raise capital. As both are negative outcomes for current shareholders, investors could wait for the stock to break its current support at $2.26 and take short positions ahead of the upcoming shareholders’ meeting. It is also worth noting that NKLA stock is currently overvalued since its BVPS stands at only $.74 which could be a good target for investors shorting the stock. NKLA Forecast Taking into consideration NKLA’s dwindling cash balance, negative gross margin, and its overall financial state, it becomes abundantly clear that NKLA stock’s recent short squeeze is inconsequential. In its current situation, the passing of the provision allowing the company to double its authorized shares appears to be the only scenario where the company will continue existing. However, the company’s survival is associated with mass dilution that would see its share price plummet substantially from current levels. Given that the alternative is filing for bankruptcy, taking a short position in NKLA stock may prove to be a profitable decision, but investors should be wary of potential short squeezes and set stop losses to mitigate any potential losses.by Penny_Stocks_Today12
#NKLA trade plan. Looks reasonableUnusual option activity was identified, resulting in the formation of a HUGE straddle. The resistance level coincides to purchasers' liquidity (see chart), which strengthens the logic of the option combination. We do the best research as we can to find new opportunities in the massive amount of information every day to make data-driven trading decision. Please feel free to leave any comments you have and like this idea if you agree with us. Any feedback or comments will be read. We appreciate it all!by ClashChartsTeam11
Long NKLA!NKLA long. Entry at 1.06. Scary stock, going to be cautious with this but don't want to let this opportunity slip by because I believe there is massive gains to still be had from these levels. Target #1 2.00 Longby gabrieldavila308Updated 2218
Bullish Potential in NKLA: Fib Retracement Highlights Promising Hello fellow traders, I would like to bring your attention to Nikola Corporation (NKLA) and the intriguing bullish potential it currently exhibits. In this post, I will outline a Fibonacci retracement analysis for NKLA, along with key take profit levels that could be considered for potential trade setups. Fibonacci Retracement Levels: - 0% - $0.54 - 0.382 - $0.98 - 0.5 - $1.12 - 0.618 - $1.26 - 0.786 - $1.45 - 1.0 - $1.70 Take Profit Levels: - 1.272 - $2.01 - 1.618 - $2.41 - 2.0 - $2.86 Recent Market Developments: Yesterday, NKLA demonstrated a notable rebound from the 0.382 retracement level, suggesting the presence of support in that area. Moreover, the stock is currently displaying signs of a breakout above the 0.618 retracement level, which is a positive indication for further upside potential. Analysis and Trading Considerations: 1. With the rebound from the 0.382 retracement level, there is a higher likelihood of a bullish continuation. The move beyond the 0.618 level confirms this sentiment. 2. Traders may consider initiating long positions in NKLA, targeting the take profit levels mentioned above. 3. It is important to closely monitor the price action and market conditions to adjust your trading strategy accordingly. Implementing appropriate risk management measures is always advised. Please note that this post is meant to provide informative insights and should not be considered as financial advice. Always conduct your own analysis and consult with a financial professional before making any trading decisions. Best of luck with your trades, and may the markets be in your favor! Disclaimer: Trading involves risks, and there is no guarantee of profits. The author of this post bears no responsibility for any trading losses incurred by individuals following the information provided herein.Longby maybethatguyUpdated 111111
NKLA round bottom reversalNKLA has reversed a trend down in the past week as it clear concerns with potentially being delisted with NASDAQ. The symmetry in the trends is shown with an arc overlaid. This brings to mind a cup and handle pattern in progress. It seems likely the NKLA will have a bullish continuation from the good news of stability of its NASDAQ listing. Potential buyers on the sidelines may take positions and generate momentum. I will trade a long trade early in this upcoming shortened trading week. The longer-term anchored VWAP provides support as so just under that will be the stop loss. The first target is 1.70 which was a resistance level a few weeks ago.Longby AwesomeAvaniUpdated 337
NKLA Long from bottom of channelNKLA has had an interesting week as it sought to have shareholders vote for a dilution to raise the cash necessary to grow its business. The former CEO now convicted and awaiting sentencing as a major shareholder led the opposition and the vote for a dilution failed. Seemingly, NKLA will now seek capital through some other means. Earlier, it was awarded a grant of $24M by California to build out hydrogen station infrastructure along the interstate highways. On the 15-minute chart, the price is currently at the bottom of a slowly rising channel coinciding with the bottom of the Donchian channel indicator and two standard deviations below the mean anchored VWAP. I see this as a good entry point for targeting first the middle of the channel and secondarily the top of the channel. I will find an exact entry on a short time frame likely 1 or 3 minutes and expect to realize a profit of 12-13% potentially intraday. Without regard to the fundamentals of NKLA's financial health, given the extreme volatility, I believe that NKLA can be successfully traded long if the trade is entered when it is oversold and undervalued.Longby AwesomeAvaniUpdated 113
Falling wedge breakout? We will see soonLooking at a falling wedge pattern with potential breakout. Keep an eye on the daily volume and break and close above the green solid line. Could be a nice long term play to 9 in a few years. Thanks for taking a look. Longby TheAmericanTaxpayer662
Anyone else see NKLADoes this look healthy to anyone else? Just did a look through on their website. They are voting on a proposal to increase shares of their stock. Not sure if it is a split or what. They are calling it Proposal 2. Other than that, this looks like a bounce from bottom if I've ever seen one. Let me know your thoughts. www.nikolamotor.comLongby maybethatguyUpdated 232312
Nkla long ,look like shaken out all weak hand , my option that it hard to find a big company with a cheap cheap stock prize . at the time of writing I bought some at 1.19 for long term. I Dont have to buy to much . If lose I lose. But if I win I think that a way to go.Longby hungmttoronto2
Nkla long target 4.27If NkLA hold this level for this week Than next week will be upside target 4.27 I am buying at 1.6 and holding . I think this is trade of the year , we may not see this level anymore that my prediction. If you like pleased click the like buttonLongby hungmttoronto1113
Nkla longThanks for letting me post. Nkla every day gap up that a good sign . I am all in nkla and will vote for issue new share it is same as Tesla stock split. Investor invest in tesla I don’t see why not in nklaLongby hungmttoronto110
Nkla to buy target 2.1The stock holder want to buy out the company that why they not approved for stock share increased. But they have to approve share increased because what is it good for if you not approved and stock price going down. Company need money to do operate then stock price going up to 10$ .then is it worth it. Or they just want to drive down share price so they can take the whole company.Longby hungmttoronto224
NKLA Is Nikola puting in a bottom ?NKLA is trying to make an all time low. Fundamentally, the last earnings were okay. Some members of the board are retiring soon. Technically, the relative selling volume is much higher than the moving 50 day average. The zero lag MACD shows no bullish divergence suggesting that that there is no impending reversal. The indicators K/D lines have not crossed indicating the moving average compression / convergence are continuing. Price has fallen outside the Bollinger Bands. NKLA finished out the week with some engulfing bear candles on the news of instability on its governing board. This is unlike the candlestick pattern when NKLA did minor pullbacks on the downtrend foreseen by small body red candles to setup up the minor pullbacks. All in all, as a penny stock, this is probably not shortable but it does have put options for $23.00 per contract for the $1.00 strike DTE 5 with a spread of 5% with high volatility and open interest ( reasonable liquidity) I will take a put option trade of several contracts targeting 50% return and setting a stop loss at 10%. I have always found it helpful to have some naked puts in the portfolio so when the general market of SPY / QQQ reverses t o the downside they can help the put options capture some profit in the synergy.Shortby AwesomeAvaniUpdated 556
all the indicators are down almost 100% sure shorting position !NKLA 100% SHORT FINAL CALL This is the king of shorting and making money! NFAShortby chartbusters891
NKLA 100% SHORT CONFIRMATION!Please don't enter now, this is going to 45- 50 and may be to 25 cents depending on the company offering! cents area! there is not even 10% upside right now. Toooooo high risk to enter.. Again this is one of the most volatile.. so don't enter right now. MACD/RSI in the worst position, recovery will take months!! at least another 5-6 months.. Wait for the indicators to cool down and for a base for the liquidation and wait for the news and then enter.. this is a falling knife!Shortby chartbusters89111
nkla quick updatenot much to say other than it is a buy zone and could potentially give is at minimum a 100% roi thanks for your time rigoLongby rigorocks2212
NKLA - Exotic Double Three Will See $2NKLA 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. Shortby dRends35Updated 171722
DOWNWARD TRENDDescending trend line for "Tecnologia Financiera Trading Course" Stock Market 1.1 Here we can clearly see that the trend line touches at least 3 times the top prices.by cmayorca0
NKLA STOCK AnalysisBearish Market since 2020. In the next months it might go up again Starting a new Bullish Major Trendby Mauriello2
Nikola-NKLA-RSI and EMA IdeaFirst of all, please invest what you can afford to lose. From my point of view NKLA is a perfect example of why it is a good thing to not falling in love with stock/company. Since December 20th, 2020, Buying when RSI is at the bottom of RSI bollinger(lime vertical color) and selling when things are opposite (red vertical color) works well. I completed 2 trades already and last buy is underwater for now. January 2022 - Buy March 2022 - Sell July 2022 - Buy August 2022 - Sell (this one was great) January 2023 - Buy (but I f...d up on this. Bought at 4 and DCA'd. My average is 3,23 now.) Still holding. I would not care even if the company is over because i invested what I can afford to lose. Hope It helps. P.S: Weekly EMA 50 is also a good point to sell this stock and stay away.by ladedimone0
NKLA on D-Chart looks Long- Making higher highs and higher lows. - Price is moving in a range, getting closer to the top trendline, and trying to poke the resistance zone.Longby PivotTrade9444