China a boost for Nikola

 China a boost for Nikola

China a boost for Nikola.

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The focus for today would be on CPI as well as FOMC meeting minutes that are set for release during the US session. Inflation stabilised over the last 3 months and slightly declined last month giving the Fed a sense of confidence that we might be in a transitory state, giving the expectation that a decline in inflation might give the Fed more confidence to start tapering before the year-end.

Yesterday’s movers:

  • MGM was up 9.61% following a Credit Suisse improvement
  • PLUG was up 7.70% as solar shares rally following Chinese focus on large scale renewable energy development
  • NKLA was up 7.68% benefited from the Chinese renewable energy statements
  • ABNB was up 3.65% as it was upgraded by Cowen expecting the longer-term hotel-to-home trend

Stocks to watch:

Nikola Corporation (NKLA)

Nikola outperformed Tesla (TSLA +1.5%) yesterday following Tesla’s Chinese deliveries for September, opening the huge upside potential for the Chinese market. The Chinese renewable energy commitment was the big driver behind the substantial upside, as a lot of electric vehicle focus will be on the Chinese market going forward.

The agreement that was struck between Bosch and Nikola to manufacture fuel cells has ensured that the electric truck manufacturer will be able to implement their plans accordingly.

Technically Nikola is currently trading in a range and crucially trading at the bottom of the daily range as it failed to make lower lows, a break and continuation of that range may indicate that there could at least be some substantial upside in the coming months with the 200 daily moving average as the near-term target.

Zander van der Merwe

Zander van der Merwe is a Commerce graduate with majors in Economics from the University of Pretoria with an intense passion for the financial markets. My general focus is to look at the markets holistically combining strong Fundamental views with the incorporation of Technical analysis in the sphere of the United States stock markets, indices, commodities as well as the new kid on the block: cryptocurrencies. I incorporate this very strongly with my value add to the TD Markets team to ensure that clients are being given the transparent and in-depth view of the markets that is imperative to a career in trading. I am also a writer and market analyst at TD markets

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