Shares of electric vehicle manufacturers are suddenly heating up.
Normally, market headlines in this industry are dominated by Tesla (TSLA), which has climbed 254% this year. However,Tesla (TSLA), is taking a back seat as newer names drive into the spotlight (for more on Tesla, click here).
Two lesser-known names in this sector jumped by more than 20% on Monday. Shares of Nikola (NKLA) climbed by 21%, but that rally came after a protracted downward move that saw the stock's price cut in half.
We correctly predicted that downward move on June 18th (click here for details). Nikola is scheduled to report earnings after Tuesday's closing bell.
After breaking support in a symmetrical triangle (black dotted line), Nikola plunged from $65.90 on July 1st to $30 on July 31st. After Monday's strong move, Nikola could be ready to break out of a bear channel (red lines). This would halt the stock's decline, but it in no way guarantees that the stock will roar back to its earlier heights.
Workhorse, on the other hand, has a more promising chart. This stock popped 23% on Monday, on its highest volume in nearly a month (arrow). Workhorse is forming a bullish saucer pattern (semicircle), which projects the stock to the $27 area.
Nikola is scheduled to report earnings after Tuesday's close, while Workhorse is due to report on August 10th.
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Ed Ponsi is the managing director of Barchetta Capital Management, and is the author of three books for publisher Wiley Finance. A dynamic public speaker, Ed has made appearances around the world, in such diverse locations as Singapore, Dubai, London, and New York. For more information about Ed and his work, click here.