Is LCID Stock Preparing For $10?

Lucid stock price (NASDAQ: LCID) recovered 35% approx after hitting the 52 week low. The buying volume also increased which positively impacted the prices and showed the signs of short term trend reversal.

LCID stock price failed to perform well in the past few months and traded with a bearish bias. The stock price moved for quite some time in the narrow range between $6.00 to $9.00. It might be an indication of base formation.

Lucid Group stock price has managed to climb above the 50 day EMA but the price did not give the follow up momentum. Therefore, sellers are still active and trying their best to keep the prices inside the range.

In mid June, Sellers once tried to pull the price below the lower range. Luckily, the responsive buyers came forward and succeeded to push the prices back to the range.

Presently, the LCID stock price is in the recovery mode and racing toward the higher range. Lucid stock price closed the previous sessions at $7.45 with an intraday rise of 5.23%. The market capitalization stands at $14.96 Billion.

Will Lucid Stock Price Break the Higher Range?

Lucid stock has tried multiple times to break out of the 50 day EMA but was rejected each time. The short term up move is not able to hold the higher levels indicating the strong presence of sellers.

However, the recent up move in the LCID stock looks powerful and is likely to give a tough challenge to the sellers. Till the Lucid stock price is holding the 50 day EMA, the probability of range expansion remains high.

Also, if the buyers succeed to break out of the higher range, the price might reach $10.00 in a short span of time. However, if the price drops below the 50 day EMA, then bears will again try to drag it down to yearly lows.

The technical analysis suggests that the upcoming breakout attempt in LCID stock will be more powerful as compared to previous ones.

Will LCID Stock Price Give the Follow Up Momentum?

LCID stock price formed a bullish engulfing candle on a weekly time frame. Buyers tried to give the follow up momentum but $8.00 is acting as an immediate hurdle. If the broader market index – Nasdaq composite – continues to perform well, then it might positively impact Lucid stock.

The MACD curve displayed a positive crossover and the distance between MACD and moving average is getting wider. It indicates mild bullishness and recovery is likely to continue.

The RSI curve at 60 sloping upward denotes the strength of bulls as well as the confidence of buyers.

Conclusion

Lucid stock price (NASDAQ: LCID) performed well in the past 2 weeks and managed to climb above the 50 day EMA. The technical analysis suggests LCID stock is recovering and the probability of reaching $10.00 will increase after range breakout.

Technical levels

Resistance levels: $10.00 and $13.00

Support levels: $6.00 and $5.44

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.