NEL hit by Nikola Short hit piece - mind the gapWith the Hindenburg short accusation report against Nikola, the price of the NEL stock has come under pressure, indicating a possible double top pattern and putting the subsidiary offering in doubt.
The stock need to protect the last major support level at around 17.5, or the clearly visible gap in the volume profile will come into play as large amount of recent positions come deeply underwater.
With new strong disruptions to major markets, a major crash in the share price to more solid support levels in the 12-14 range can not be seen as impossible
However, any strong comeback from Nikola could cause a strong reaction to the upside.
Attractive play to consider a trade with tight stop loss. :)
