Bullish Setup at Support - Lovely Upward Targets Hello friends, hope you had profitable trading with the markets recovery last week.
Nikola was hit hard along with the EV stocks recently but hey if you think the drop is extremely bearish, please have a look at the pattern under development near strong support zone and lets prepare to profit in the coming days/ weeks.
First, let's look at the long term trendlines (purple color in chart); the recent drop stopped exactly at the trendline to mark a low of $14 which is slightly higher than the support made back in Dec 2020. Secondly, there is a possibility of complex inverse head & shoulders formation as marked in the chart, however this will not play out without breakout and daily closing above the upper trendline around $22 depending on the price development next week. Nevertheless, even if the pattern doesn't play out, we can still open a buy position early next week and target the following:
- Target 1: $18
- Target 2: $20
- Target 3: $22
You may enter the trade after decisive breakout of last week high ($17.2) and hold tight for the target. I think Tesla have potential upward movement and with it other EV stocks like Nikola will move. Stop loss can be placed below $15 as per your risk management. If the upper trendline breaks, the target would be much higher around $30, $35 then $55 though lets get too excited until the trendline breaks.
p.s. I have rounded the figures to remember them easily :)
Please share your thoughts; wishing your best of luck in your trades and as usual thank a lot for your support!
