Shares of Nukkleus Inc. (NASDAQ:NUKK) are trading lower Wednesday. Here’s what you need to know.
- NUKK is encountering selling pressure. Get the latest updates here.
What To Know: The defense holdings company announced the pricing of the initial public offering for its newly formed SPAC, SC II Acquisition Corp, which Nukkleus is the majority owner of the sponsor entity. SC II expects to raise gross proceeds of $150 million through the sale of its units at $10 per unit. The IPO is expected to close around Friday.
On Tuesday, Nukkleus said that Rimon, a company that Nukkleus is in the process of acquiring, will benefit from a multi-billion-dollar Iron Dome expansion recently approved by Israel’s Ministry of Defense. Rimon is the Israeli supplier of critical power and subsystem components for the Iron Dome missile defense system.
The contract is funded primarily through a $8.7 billion U.S. defense assistance package, which includes $5.2 billion earmarked specifically for Israel’s air-defense systems, making it one of the largest Iron Dome production investments in the system’s history.
NUKK Analysis: Nukkleus is trading approximately 14.8% below its 50-day moving average of $7.09 and about 41.7% below its 200-day moving average of $10.37. These indicators suggest a bearish sentiment, as the stock struggles to regain momentum. The relative strength index (RSI) is currently at 52.69, indicating a neutral position; however, this could quickly shift if the downward trend continues.
Support is identified at $5.18, which may provide a critical floor for the stock in the near term. If Nukkleus fails to hold this level, it could face further declines toward its 52-week low. On the upside, resistance is positioned at $6.66, a level that traders will need to watch closely for potential reversals or breakouts.
The current setup indicates that Nukkleus is at a pivotal point. A sustained move below the support level could signal further weakness, while a rally past the resistance could suggest a potential recovery. Investors should be particularly attentive to these key levels as they navigate the stock’s volatility.
NUKK Price Action: Nukkleus shares were down 4.69%, trading at $5.97 at the time of publication, according to Benzinga Pro.
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