Nikola Corporation (NKLA)

[Scandle34]

overbought and oversold indicators are useless unless the conditions are reasonably steady state. IPO singularities and floats expanding by multiples throw those metrics out the window.

In this case there is a concerted short selling effort that was willing to pas a coule dollars a day in borrow fees, a total lack of shares to short, and a large amount of new ammo coming their way. Even if zero warrants are redeemed (so those shares cannot be shorted) and even if the IPO shares don't want to sell, the brokers holding those newly unrestricted shares will lend them.

Meanwhile the chatroom enthusiasm simply is not there to prop it up and the company is not appearing to stand out with bookings, etc.

Add to that that people who appear to talk with the company are all but certain the warrants would be called as soon as possible and this is a recipe for disaster.