NKLA stock is moving higher on news that the American fuel-cell electric vehicles manufacturer has agreed to develop a full line of heavy-duty trucks with zero emissions. The company also buys its battery pack supplier in an all-stock deal worth $144 million. This move is expected to boost Nikola in its quest to become a significant player in the world of zero-emission vehicles.
RSI indicator shows bullish divergence on the upside
RSI is one of the most popular technical indicators used in the market. It helps determine overbought and oversold conditions. It can also be used for identifying trends in the market. In conjunction with Bollinger’s bands, RSI provides a visual way to observe market strength.
When RSI values rise above 30, traders expect to see overbought conditions. Conversely, when RSI values fall below 30, traders can expect to see oversold conditions. In addition, the indicator uses a standardized extreme range approach, which makes understanding the signal easier.
Divergence is a technical term that describes when the price and a technical indicator move in opposite directions. It can signal positive or negative movements but is not a predictor of reversals. Generally, divergence is most effective when spotted in short-term charts. However, it can be seen in other time frames as well.
In the case of NKLA, an example of a bullish divergence occurs when RSI lows and MACD highs increase. It can be seen in the chart below.
NKLA stock is on a support zone with a resistance zone of 35% to the upside
NKLA is catching the attention of traders. The stock has been in a downward trend for a very long time. It is currently sitting in a support zone.
A support level is a price level at which demand usually outnumbers supply. It is a crucial concept for technical analysts. A resistance level is the opposite, with more selling at a particular price level creating a more robust resistance level.
A support and resistance zone is a price area that can be identified using moving averages or trend lines. It can also be determined by looking at pivot points, which identify the highest and lowest prices on a given trading day.
The best way to approach a support or resistance zone is to determine your trade style. For example, do you prefer to wait for a confirmation signal, or do you want to close out your business at a breakeven point?
If you are a professional trader, you will likely place orders around critical levels. These orders are typically placed in zones that defend these key levels.
Nikola is buying the supplier of its battery packs in an all-stock deal worth $144 million.
In an all-stock deal, E.V. battery developer Romeo Power has been acquired by Nikola Corporation for a total of $144 million. The boards have approved the agreement for both companies.
The acquisition will help Nikola gain control of its battery supply chain, allowing the company to reduce production costs and improve the overall efficiency of its battery pack manufacturing process. Specifically, the company plans to cut non-cell-related battery pack costs by 30-40 percent by the end of 2023. It will also begin producing its E.V. packs in-house.
The acquisition is expected to close by the end of October. In a recent regulatory filing, Nikola indicated that it had enough unissued stock to complete the transaction. In addition, it addition, it said it would provide $35 million in interim funding to Romeo to stabilize its operations.
The deal will give Nikola control over the battery pack engineering and manufacturing processes, a crucial part of the electric vehicle industry. The company estimates it will save $350 million over the next four years by integrating the battery pack supplier into its operation.
Nikola is moving up on news that it has agreed to develop a full line of zero-emission heavy-duty trucks with CNH Industrial
Despite a sluggish stock price in recent weeks, Nikola Motors shares have rebounded by more than 7% on news that it has agreed to develop a full line of zero-emission heavy-duty trucks with CNH Industrial N.V., a Dutch company based in London.
The partnership is based on a $250 million investment from CNH Industrial N.V. and will also include engineering assistance from Iveco, the truck brand of the Dutch company.
The trucks will be built on an Iveco S-Way platform. In addition, the vehicles will be based on a battery-electric drive system. This system is currently being test-driven on public roads. The trucks will be delivered to U.S. customers next year.
The companies plan to build up to 50 thousand units per year. They will be available to fleet operators for a flat per-mile fee. They are also seeking investors for an assembly plant in Phoenix, Arizona.