Lucid Group Stock News and Forecast: LCID falls as stocks soar

Lucid (LCID) stock failed to take part in turnaround Thursday as the stock closed at $13.01 for a small loss of 0.6%. This was in sharp contrast to the huge reversal in the stock market after another hot CPI report. Indices were down 3% just after the 40-year high in core CPI. However, a swift rebuke took place as sentiment and positioning were already max bearish. This led to a huge covering and a squeeze. In the end, the main indices closed up betweeen 2 and 3%, but Lucid remained mired in negative territory.

Lucid stock news

On Tuesday we got some comfort from the latest delivery numbers from Lucid. The group looks on track to meet its reduced yearly delivery target. Lucid delivered 1,398 vehicles on the production of 2,282 vehicles during the third quarter from its Arizona plant. The company has a reduced target of 6,000-7,000 vehicle deliveries, which it cut from 12,000 to 14,000. After the delivery number, Morgan Stanley was reasonably positive on the story, citing increased capital needs but also highlighting the continued supportive stake by the Saudi Investment Fund. However, the stock price has continued to languish and touched a yearly low on Tuesday of $12.20. 

Lucid stock forecast

Lucid stands to gain if we get a risk-on bear market rally, which was not looking likely on Thursday before the open. However, that probability increased as the day wore on. Lucid is one of the more beaten-down stocks, having fallen as mentioned above by 68% this year so far. 

We have detailed an 8-hour chart below to eliminate some of the noise from the massive spikes in 2021. What we are left with is still a clear downtrend. Resistance now is from the previous lows at $13.25 to $13.58. Trendline line support is $11.45, and below that $10 is where the stock languished for some time before exploding in early 2021. 

LCID stock 8-hour chart