NKLA) tumbled 7%; Will NKLA drop below $1?

Nikola Stock (NASDAQ: NKLA) fell 7% in the previous session and is down by 50% in the current month. It formed a bearish pattern and dropped below $2.00 levels showing that the bears are getting active. 

NKLA stock faced sharp rejection from $3.72 and slipped below the 50-day and 200-day EMA. It showcases that the trend has again reversed in the downward direction. 

At the beginning of July, Nikola Corp. (NKLA stock) managed to climb above $1.00. It triggered the positive sentiment and slowly, the prices began to recover by forming higher high swings. 

Meanwhile, the volume in the NKLA stock increased and prices rallied 240% in 2 months. The momentum in the NKLA shares halted near $3.71 and profit booking triggers from the higher levels. Later, prices declined and eroded the previous gains. 

Nikola Corp. released the previous quarter earnings on August 4, 2023. It reported an  EPS of -0.20 vs. estimates are -0.22. Also, it reported a revenue of $15.362 Million vs. an estimate is $14.995 Million. 

The company beats the EPS as well as revenue estimate by 9.07% and 2.45%. Despite that, the stock reacted negatively and continued the fall.

Short Squeeze Possible Nikola Stock (NASDAQ: NKLA)

Nikola Stock (NASDAQ: NKLA) is in a correction phase and sellers seem more active as compared to buyers. 

The broader market indices Dow Jones, Nasdaq Composite, and S&P 500 all are reversing down. If it continues to decline then the possibility of recovery in NKLA stock will decrease substantially. 

Till NKLA stock prices trade below  200 days EMA any short-term pullback might face rejection. However, presently the Nikola Corp. shares are near $1.00 and short sellers may decide to book their profits which may trigger a short squeeze.

NKLA Stock Price Analysis on Weekly Time Frame

NKLA stock is forming a strong bearish candle on a monthly and weekly time frame. The sellers were continuing the dominance on the higher levels and no signs of recovery were visible. 

The MACD generated a negative crossover and the curve is sloping down. It indicates bearish momentum might continue for some more time. 

The RSI at 36 slopes down denotes weakness. However, if the Nikola prices decline further then RSI might test the oversold territory. 


Nikola Stock (NASDAQ: NKLA) is highly bearish and erodes the previous gains generated in the month of July. However, the NKLA stock price is near to $1.00 so either it will trigger a short squeeze or decline further.

Technical levels
  • Resistance levels: $2.00  and $3.72
  • Support levels: $1.00 and $0.50

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

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