Nikola Corporation (NASDAQ:NKLA) shares are skyrocketing Tuesday as traders think how weak hands are out of the stock and GM $100K truck is not the competition to their Badger truck.
Why is Nikola stock up?
Bitcoin is running again in October, breaking the $12K wall but there is one stock that is rolling down the hill faster than BTC, Nikola shares are up almost 10% on Tuesday during pre-market session.
Nikola shares are up since people are bored to death with other EV SPACs such as SPAQ and HYLN and some investors are still ready to place their bets on larger-than-life Nikola myth.
What is the NKLA price forecst?
Everything is possible with NKLA, history proved that already. But can the price go above $30? If this happens sky is the limit. What else is new, right? This industry fell into a slump last month amid Nikola scandal and so-called visibility into how future business is shaping up is, well, not very visible. Executives haven’t seen much of anything that’s really definitive in terms of a pick up, and they’re hesitant to make any concrete comments predicting an upturn in businesses.
As for the NKLA stock price, forget about a slow ramp-up once things turn up. This group of stocks tends to price in improving fundamentals early on — and quickly, leaving investors who wait too long on the sidelines out of luck. Folks tend to flee from these stocks at the first signs of a delivery slowdown.
Perhaps another upward move is brewing
So, what’s the upside? NKLA stock is trading below its historical levels on a number of measures.
$NKLA Price Levels: Gapping up— Trade With Zero Emotion | Vini (@ProTrader_Vini) October 21, 2020
$21.81 needs to hold to have a bullish day.
$23.20 would act as resistance for the day. If it breaks/opens above then we have a room for $25.#NKLA pic.twitter.com/3shiHL7SAT
Although uncertainty in the macro environment seems to be limiting multiple expansion in the near term, I believe the risk/reward of shares appears attractive on a 12 to 18 month outlook