LCID may have lucid dreams about path down the road—price may wake up soon

• Changes in the share holding by the CEO.
• New venture to achieve the 2030 goal of shifting to EVs.
• Preparing to enter the Chinese EV market.

CEO, CTO and Director of the Lucid Group Inc. (NASDAQ: LCID), Peter Dore Rowlinson has recently bought more shares of the company. The whole EV industry is moving closer to innovative strategies to bring out tech that blows everyone’s minds. 

Where rival companies like Stellantis are pursuing projects like aerial EVs, Lucid Group hasn’t shown any signs of new proposals furthering their motto. With perennial innovations and efforts made to develop the technology, many companies have taken the initiative to build in the required infrastructure. 

The recent alliance of Chargepoint and Mercedes Benz took up the project to provide 2,500 high-power chargers by 2027, and many other ventures working to achieve the 2030 aim of $1.2 trillion infrastructure bill. The coming decade may witness from flying cars to out of the box innovations leading to greener planet.

Although recent reports reveal that Lucid Group is likely preparing to enter into the Chinese EV market, its current prices show a disagreement in opinion. The company was unable to book profits for a long time and this news of expansion has got the holders furious.

Peter Dore Rowlinson, CEO, has bought more shares in  the past few days. Theoretically, many extract this change as some new ventures might be proposed by the company, and to fund it the directors chip in a few bucks in form of shares.

But in real instances, it might hold more value than this. It could be due to the current down pace, directors show interest and support the future goals of the company by providing funds. Or it could be simply to increase the share in the company to gain more control of the decision making. 

Whatever may be the reason, it’s often a positive sign when the existing shareholder increases his holding in the company. It reflects loyalty and hopes they hold from the project. 

The price tale

The LCID prices have formed a falling parallel channel with the current action taking place in the lower half of the channel. The 20-EMA that hovers above the current prices of $6.36. The present down trend has forced investors to sell off and leave, which is observed in the volume. The volume also reflects recent purchases (circle) being made as the bears buy the dip.

The RSI slid up to the bounds after being oversold for some time. The MACD records matching behaviors as a bunch of purchases followed the prolonged sales. If prices crack the breakout level of $10.76, it may set a price rally up to 15.25.

Conclusion

The current market is in a dilemma as the expansion projects upset the unsatisfied LCID holders, but changing holding in the directors also flare a green signal. LCID holders must keep an eye on the breakout zone for the possible rally. 

Technical levels

Support levels: $6.02 and $4.20

Resistance levels: $17.22 and $19.30 

Disclaimer

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

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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