Lucid Group Stock Drops: Why It Could Recover Nicely

Lucid Group Stock Drops: Why It Could Recover Nicely

Lucid Group Inc. LCID shares gapped lower Monday morning after the company said it received a subpoena from the SEC requesting documents related to an investigation.

Although it pushed much lower after the market open, the stock has recovered some ground, showing a bit of strength.

Lucid is trading down 7.59% at $43.68 midday Monday. 

Lucid Daily Chart Analysis

  • The stock saw a steep drop lower Monday and looks to have bounced near the 50-day moving average.
  • The $30 price level held as an area of resistance in the past, but as the stock was able to break above this area, it may now hold as an area of support in the future. If unable to hold as support, the next area of strong support shown on the chart may be near the $17 level.
  • The stock is trading above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the sentiment in the stock has been bullish.
  • Each of these moving averages may hold as a possible area of support in the future.
  • The Relative Strength Index (RSI) has been fading lower the last month and now sits at 47. This shows that selling pressure has increased in the last month and there is now slightly more selling pressure than buying pressure.

(Click on image to enlarge)


What’s Next For Lucid?

Bullish traders are looking to see the stock push higher and begin to make higher lows. Although the stock saw a down day Monday, it may be the start of a bounce and an uptrend could start forming once again.

Bearish traders are looking to see the stock continue to have down days and fall below the moving averages. If the price falls below the moving average,  it may be a signal that overall sentiment in the stock is turning bearish. Bears are then looking to see the stock fall and break below the support levels in the future.

© 2021 Benzinga does not provide investment advice. All rights reserved.

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