- Lucid Motors stock falls on Thursday.
- LCID stock falls over 3% after a strong surge on Wednesday.
- Lucid fails to break above trendline resistance.
Lucid Motors stock (Nasdaq:LCID) failed to push on from the strong showing on Wednesday, when the electric vehicle manufacturer's shares had surged by just over 7%. The catalyst on Wednesday had been bullish comments from Lucid Motors (LCID) CEO Peter Rawlinson. At an event in Lucid's Casa Grande plant in Arizona, the CEO said that Lucid was on track to start delivering vehicles in October this year and that it should meet its 2022 and 2023 production targets. Peter Rawlinson also said the company has enough cash to fund itself until the end of 2022 and that the balance sheet is ok. This may have reassured some traders as rumours had been circulating on social media about a potential capital raise.
Referencing current global supply chain issues and in particular semiconductor chip shortages which have affected the automobile industry, the CEO said he saw pressures easing next year. This chimes in with comments made earlier this month by Tesla CEO Elon Musk.
All of this positive news was enough to generate huge social media attention as mentions of the ticker LCID trended heavily and retail investors returned to a well-followed stock. Thursday though did not see the anticipated follow through with LCID shares ending down over 3% at $25.38. A number of factors may have been at play with heavy markets in particular not helping and perhaps also some profit-taking ahead of quarter-end on Thursday. Also, we had identified the large-wick candle in Lucid stock on Wednesday, as it retraced quite significantly towards the close. This may have put off some trend-following players.
Lucid Motors key statistics
|Market Cap||$39.7 billion|
|Enterprise Value||$7.5 billion|
|Average Wall Street Rating and Price Target||Buy $21|
Lucid Motors (LCID) stock forecast
Wednesday's price action was a little disappointing but Lucid did hold above the 9-day moving average and also held above the breakout level of $24.50. This is also a strong support zone, as can be seen from the point of control at $24.57. The point of control is the price with the highest amount of volume, hence an equilibrium of sorts. We remain bullish so long as Lucid (LCID) stock holds above $25. Breaking lower brings support at $22, with a strong volume profile and the 200-day moving average just above, so that remains a buy the dip, but always use stops.
FXStreet View: LCID bullish above $25.
LCID daily chart
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