NKLA Long from bottom of channel
Updated
NKLA 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.
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.
Trade active
NKLA hit the top of the channel and bounced down into the mid channel area. Niceday trade 15% overall taking partials after the quick morning rise.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.