Market Price Prediction

NKLA Stock Price Prediction: Are Buyers Still in Control?

  • NKLA’s stock price is currently trading at $2.50.
  • NKLA price is retesting the $2.00 level after the cup and handle breakout.

Nikola Corp. NKLA was founded in 2015 by Trevor Milton. Nikola Corp. offers infrastructure and transportation solutions with zero emissions. It creates electric batteries, hydrogen-electric vehicles, electric drivetrains, vehicle components, energy storage systems, and hydrogen fueling station infrastructure. 

What Caused the Sudden Drop in NKLA Stock price?

On August 4, 2023, Nikola’s share price experienced a significant drop of 12% following the resignation of Chief Executive Officer Michael Lohscheller from his position. The company also reported a decline in revenue for the second quarter.

The reason given for Lohscheller’s resignation was family health issues, indicating a personal and unexpected circumstance.

Nikola’s Q2 revenue for the mentioned period was $15.4 million, which was lower than the revenue recorded in the previous year, amounting to $18.1 million. This decline in revenue could have contributed to the negative sentiment surrounding the company and its stock price.

The combination of the CEO’s resignation and the drop in revenue likely created uncertainty among investors and led to a significant sell-off in the company’s shares.

Will NKLA Price Increase in the Future?

NKLA Stock Price Prediction: Are Buyers Still in Control?
Source:Nikola Corporation.. 1D Chart by TradingView

In June 2020, Nikola’s stock price reached its all-time high of $94.40, after which it experienced a significant decline over the next three years, dropping to as low as $0.5210 in June 2023. During this period, NKLA Stock was in a prolonged downtrend.

Around December 2022, the price formed a support level at $2.00 and a resistance level at $2.83. For four months until March 2023, the price remained within this range. In March 2023, the stock price broke down from this range and fell to $0.5210, forming a cup and handle pattern.

Recently, the stock price of Nikola broke out from the cup and handle pattern and rallied to the $2.83 resistance level. Currently, the price is trading at $2.50, with $2.00 serving as a support level.

The resignation of the CEO in the company could have contributed to the fall in the stock price, but it is important to note that the chart was still showing bullish sentiment. This price decline might be viewed as a pullback, as it was driven by news rather than a change in the overall market sentiment.

NKLA Stock Price Prediction: Are Buyers Still in Control?
Source:Nikola Corporation.. 1D Chart by TradingView

As of the current analysis, the Supertrend indicator suggests that the price of Nikola stock remains in bullish sentiments as it is still trading above the green line. This indicates a positive trend, and buyers are still active in the market.

However, the relative strength index (RSI) is currently at 54.98, and it is trending in a downward direction, indicating a potential loss of momentum. The RSI is in neutral territory, reflecting a balance between buying and selling pressures.

For the bullish sentiments to be confirmed, traders should watch for the RSI to take support from the 50 level and bounce back upwards. If the RSI finds support at 50 and starts trending upward, it would signal a potential resumption of the bullish momentum and may reinforce the positive market sentiment.

NKLA Stock Price Prediction: Are Buyers Still in Control?
Source:Nikola Corporation.. 1D Chart by TradingView

The 50 EMA(yellow line) is at $1.83 and the 200 EMA (red line) is at $2.41. The Nikola stock price is trading above both EMAs and the EMAs are trending in an upward direction, which indicates that bullish sentiment is still present. If the price sustains over both EMAs or takes support and goes in an upward direction, then the price can be seen at the $4.93 resistance level. 


Based on the information provided, the overall market structure of NKLA stock is bullish. The recent fall in price, which was caused by news, can be seen as a pullback, suggesting that the prevailing uptrend is still intact.

The fact that all the mentioned indicators are currently bullish further reinforces the positive sentiment. These indicators include the Supertrend indicating bullish sentiments as the price is trading above the green line and the Relative Strength Index (RSI) at 54.98, trending slightly downward in neutral territory, which can still be interpreted as holding positive sentiment.

Technical levels

Resistance levels:$2.83 and $4.93.

Support levels: $2.00


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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