Mullen Automotive Stock News and Forecast: Why is MULN stock up again?
- MULN stock is back on retail traders' minds as it spikes 17% on Tuesday.
- MULN should see more gains on Wednesday as risk is back.
- MULN stock is a US EV maker and has been much higher during the past year.
We spoke about Mullen Automotive (MULN) stock two weeks ago and thought it had finished its moment in the sun, but here it is back again on Wednesday. In late February and early March, retail traders picked up on MULN stock as it spiked sharply higher. Back then we figured it was a pure momentum play and would struggle to maintain its gains, and so it proved. We did not think it would spike back up again so soon, but here we are.
MULN stock closed at $1.24 on Tuesday for a gain of 17%, not quite as impressive as the 145% gain on February 28 that brought it to our attention. The next day it slumped by 40% and steadily retreated below $1.
MULN Stock News
Mullen Automotive is a California-based research company that focuses on clean energy solutions and electric vehicles. A lot of these EV companies are getting investor attention after the hype surrounding Rivian (RIVN) late last year. However, that may have been peak EV as the sector is down sharply since then.
Mullen was selected by Insider Monkey as one of its top stock picks for March. This is partly based on recent news from Mullen that it had achieved a 600-mile range from its latest battery testing. This was behind the 145% price spike on February 28 when the company said its "testing of solid-state polymer cells reveals the potential for a 150-kilowatt-hour battery pack that delivers over 600-plus miles of range and highlights an 18-minute DC fast charge which can yield over 300 miles of range."
Momentum is a powerful force in markets, especially in penny stocks, where wild swings are common. This report and the current rally in equities is likely to see more gains for MULN stock.
MULN Stock Forecast
We can see how the volume has skyrocketed in this one. We do not like to perform technical analysis on something so volatile, and also technical analysis of penny stocks is not generally practical. However even we can see that $2 looks to be a key resistance level. As ever with small-cap penny stocks, take extreme caution. This is high-risk trading and a momentum play. Once it dries up, the fall can be just as sharp as the rise.
MULN stock chart, daily
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
