Markets can have memories, which means there's a good chance the rally in Nikola Corporation (NASDAQ:NKLA) may be about to end.
Shares are trading higher following reports truck production started this week. The company's 8K filing also showed Nikola expects to start producing charging solutions in Europe in 2023 and has plans for service support in Canada after 2024.
What About The Stock Move? Resistance is a large group of investors all trying to sell at or close to the same price. At resistance levels, there are more shares for sale than there are to buy. This is why rallies end or pause when they reach them.
This could be the case with the $11.00 level for Nikola's stock.
When the stock reached this level in January, a sell-off followed. If the market has a memory, meaning that sometimes resistance levels can stay intact and retain their importance for a long time, there's a good chance the NKLA rally is over.
To learn more about trading, check out the new Benzinga Trading School.
