Lucid Motors (NASDAQ: LCID) closed Monday’s trading session at $26.85 +2.74 (11.36%), with Lucid’s stock surging after the firm tweeted a photo of its cars on a transport truck on Twitter.
In particular, LCID sparked investor interest on Twitter on October 24 when it posted an image of a vehicle transporter trailer with six Lucid Air cars that had been wrapped. Despite the lack of supporting material or a news statement and the presence of just one photograph, investors sent the stock market into a frenzy.
Notably, LCID is changing hands at $26.85, which means the business is trading above its 20 and 50-day simple moving averages, typically utilized by stock investors as uptrend indications. As a result of recent performance and a price above the 20-day SMA, it appears that the firm’s short-term positive momentum is bullish.
LCID chart analysis
As a whole, some reservations are expressed about the medium-term outlook, although recent activity has been quite encouraging. For example, LCID is presently trading in the higher end of its 52-week trading range, although LCID is still somewhat trailing behind the market.
In fact, over the last month, LCID has been trading in a broad range of $22.11 – $28.39, and it is now trading in the center of this zone, which suggests that traders may find some resistance above the current price.
Furthermore, since prices have recently extended to the upside, Lucid does not now provide a high-quality setup at the moment; therefore, it is perhaps wise to wait for a period of consolidation before making an entry.
Nevertheless, with prices continuing to rise, we’ve discovered one critical support level for traders to consider—a support zone spanning the price range of $23.91 to $24.36. Several trend lines and significant moving averages in the daily time period combine to generate this zone.
Lucid on the cusp of deliveries
The fact that Lucid seems to be on the cusp of delivering its first premium vehicles has piqued the interest of investors, who are even more optimistic about the company’s chances in the hotly competitive luxury electric vehicle market.
Whatsmore, the firm continues to show growth plans by revealing pricing and opening reservations for Air Pure in Vancouver, Canada, the company’s first confirmed pricing outside the United States, as well as announcing the extension of cashless redemption of public warrants until 2 PM PDT on October 29.
Not to mention that many developments have occurred in the industry that have piqued the attention of investors in electric car stocks, led by leader Tesla (NASDAQ: TSLA), which recently landed a large deal with rental company Hertz while simultaneously announcing an increase in sales for its best-selling models.
In total, Hertz’s order for 100,000 Tesla cars by the end of 2022 is the largest ever made for an electric vehicle and is valued at $4.2 billion.