• MULN stock closes at $1.84 on Monday, losing over 14%.
  • Mullen Automotive announces plans to start battery production at California plant.
  • MULN stock still has retail believers, but Hindenburg has dented confidence.

Mullen Automotive (MULN) stock continued its collapse on Monday with the former retail favourite closing below $2 at $1.84. The stock has been under continued pressure since Hindenburg Research issued a strongly negative report several weeks ago that dented a lot of confidence in the name. The report raised some serious questions that have yet to be fully clarified. Despite some occasional bounces, it has mostly been a strong downtrend for MULN stock since the report was first issued.

See latest news on Tesla and Twitter here

MULN Stock News

Monday had actually begun on a positive note for Mullen when the company announced it was to commence battery pack production at its plant in Monrovia, California. MULN stock surged in Monday's premarket, and the shares traded up 20% at $2.67 as retail investors appeared to chase the stock higher on what sounded like positive news. However, it was not long before reality set in as there are still too many question marks surrounding the business plan. MULN stock sold off sharply and by the open of the regular session was in negative territory. This carried on and resulted in a near 15% loss for the day. Mullen filed a prospectus Form 424B4 on Friday for the sale of up to 253,109,032 shares.

"This prospectus of Mullen Automotive Inc. (formerly known as Net Element, Inc.), a Delaware corporation (the “Company” or “Mullen”), relates solely to the resale by the investors listed in the section of this prospectus entitled “Selling Stockholders” ​(the “Selling Stockholders”) of up to 253,109,032 shares (“Offered Shares”) of our common stock, par value $0.001 per share (“Common Stock”)," the filing says.

That naturally will not have helped the MULN stock price and was a large part of the cause for the steep fall. 

MULN Stock Forecast

MULN stock has now broken the support line at $2.06, which was the breakout point of the last spike on March 17. We now have a weakening Relative Strength Index (RSI), Money Flow Index (MFI) and a bearish crossover from the Moving Average Convergence Divergence (MACD). In addition, sentiment is gradually weakening and news is not helping. FXStreet forecasts a further decline to below $1 based on this price action. At least at $1 there is huge volume profile support, which may help, but our overall view remains bearish.

MULN stock chart, daily

MULN stock chart, daily

 

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD losing bullish steam as concerns weigh

AUD/USD losing bullish steam as concerns weigh

Wall Street trimmed its recent gains and approaches weekly lows, reflecting persistent market fears. AUD/USD turned south and risks additional slides as China is set to unveil growth-related figures.

AUD/USD News

EUR/USD corrective advance extends towards 0.9800

EUR/USD corrective advance extends towards 0.9800

The EUR/USD pair advanced for a second consecutive day, now trading a handful of pips below the next big figure. With no real reasons to buy the EUR, the movement seems more related to profit-taking.

EUR/USD News

Gold consolidating weekly gains amid broad dollar’s weakness

Gold consolidating weekly gains amid broad dollar’s weakness

XAUUSD trades around $1,660, pressuring the weekly high. The metal fell to an intraday low of $1,641.46 but resumed its advance as investors keep moving away from the safe-haven currency. The market´s mood is far from optimistic. 

Gold News

Bitcoin price ruptures $19,000 support oblivious to ballooning BTC/GBP’s trading volume

Bitcoin price ruptures $19,000 support oblivious to ballooning BTC/GBP’s trading volume

BTC appears to be playing games with investors in move that see price action repeatedly undermined. Earlier in the week, the flagship cryptocurrency jumped to $20,200 but immediately snapped out of the northbound move to test support at $18,500.

Read more

US August PCE Inflation Preview: Will it trigger a dollar correction? Premium

US August PCE Inflation Preview: Will it trigger a dollar correction?

The US Bureau of Economic Analysis will release the Personal Consumption Expenditures (PCE) Price Index data, the US Federal Reserve’s preferred gauge of inflation, for August on Friday, September 30.

Read more

Forex MAJORS

Cryptocurrencies

Signatures