What's Up With Nikola Stock Today?

Nikola Corp. NKLA shares are trading higher Thursday after the company reported third-quarter earnings. Earnings came in at a loss of 22 cents per share, beating the estimate calling for a loss of 27 cents.

In other news, the company said it would pay $125 million to settle a SEC probe.

Nikola was up 15.58% at $14.69 at last check.

Nikola Daily Chart Analysis

• The stock recently saw a bounce in what technical traders call an ascending triangle pattern. The price has now pushed away from the higher low trendline.
• The $20 level has been an area of resistance in the stock for a time, as the stock had trouble trying to cross above this area. The higher low trendline is somewhere the stock has been able to hold above in the past, and it may continue to do so. 
• The stock trades above the 50-day moving average (green) and crossed above the 200-day moving average (blue) Thursday, indicating the stock is likely seeing sentiment turn more bullish.
• Each of these moving averages may hold as an area of support in the future.
• The Relative Strength Index (RSI) flew higher Thursday and now sits at 79. This pushed the stock well into the overbought range, where buying pressure heavily outweighs selling pressure.

What’s Next For Nikola?

Bullish traders are looking to see the stock continue higher, but likely after the stock consolidates for a time. Bulls are then hoping to see a break of resistance, and for the stock to hold above that level to possibly see more upward movement in the future.

Bearish traders want to see the stock cool off for a time and start heading toward the higher low trendline. Next, bears want to see the stock break below this trendline for a possible change in trend.