The markets are always better understood when we take a step back and view the charts from a different perspective, rather than up close.
If there is one stock this applies to more than most in the electronic vehicle (EV) sector it is Lucid Motors (NASDAQ: LCID). The stock finished at $36.97 in the most recent trading session on Wednesday 30, representing a -0.03% decline from the previous day’s close.
Despite the fact that stock has fallen 37% from its November highs, it has increased by more than 267% over the year reminding investors never to lose sight of the bigger picture. Furthermore, the firm is up 37.79% from $26.83 when it first rang the bell on the the Nasdaq on July 26 to celebrate the company’s public listing.
LCID broke through a key resistance level at $30 but the value of the stock has since plummeted after hitting a high of $57.75 in November. Indeed, just four week ago the stock was outperforming the market as the number of deliveries accelerated, so what has happened since then?
LCID chart analysis
Firstly, Lucid’s stock, in fact, has increased by more than 40% in the previous three months alone. Current trading levels for LCID are in the center of its 52-week trading range. The S&P 500 Index, on the other hand, is now trading around fresh highs, indicating that LCID is trailing the market.
In the last month, the price of LCID has fluctuated between $35.53 and $56.24, a quite broad range, it is now trading at the lows of this range, which is a bearish sign in addition to the volume decreased considerably in the last few of days.
Lucid is down 30.22% on its 20-day SMA, however it is up 50.22% on its 50-day SMA, so although some reservations have been raised about recent development, the medium term outlook remains optimistic.
LCID does have a reasonable setup pattern, price consolidation has occurred recently, and volatility has been lessened as a result. Just above the present price, commencing at $40.88, there is a resistance zone, while there is a support zone just below the current price around $36.96.
The view from Wall Street
For the next 12 months, four Wall Street analysts have set a high price target of $60 for Lucid and a low price target of $16 for the stock, respectively. On average, the analysts expect LCID to trade at $42.75, which represents a 15.63% upside from the current price of the stock.
Overall, two TipRank experts are cautious about the stock’s prospects, with one advocating to ‘Sell‘ and the other to ‘Hold‘, while the two other analysts suggest to ‘Buy‘ the stock.
Whats next for Lucid
With the stock is down -30.22% in the last month as Lucid approaches its next earnings release date, Wall Street will be searching for signs of strength.
Investors should also take notice of any recent changes to analyst forecasts for Lucid typically, these modifications reflect the most recent short-term business trends, which might change rapidly. Positive estimate revisions are an indication of confidence in the company’s business prospects, and we may interpret them as such.
By and large, research indicates that these variations in estimation are closely tied to near-term stock prices.
Competition in the EV market
Notably, shares of Tesla (NASDAQ: TSLA) and Rivian (NASDAQ: RIVN) have risen in value over the previous five days while Lucid stock has fallen in value.
Elon Musk, the CEO of Tesla, completed his run of stock sales, which may have signaled a turnaround in the company’s stock price whereas, Rivian is still benefitting from the recent euphoria around its first public offering, which is especially beneficial when investors are looking for aggressive growth prospects.
The electric vehicle market is still in its infancy, and consequently many of these names are considered to be very speculative when compared to their current values. Inevitably, investors should anticipate volatility.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.