LCID Price In Consolidation Phase

A bullish rally for the LUCID group began at the start of 2023, rising from the low of $6.14.

The uptrend generated a return of approximately 188% and formed a high at $17.81 in the month of January.

Since then, LCID stock price has been in downtrend and corrected the impulsive move of 26 January. Currently, the price is stuck in a consolidation zone ranging between $6.70 and $8.70.

LCID stock price is down -31.13% in the past 3 months and down -58.53% in the last 12 months. LCID price is hovering just the major demand from where the bullish rally started. If the price is able to break and close above the $8.70 level, there is a higher probability for the price to retest the $11.25 level.

On the contrary, if bearish momentum strikes the market and shatters the recent support of $6.70 level, there is a higher probability that price might head down toward $6 level.

LUCID Group Might Enter Into Penny Stock Category

Lucid Group recently reported first Quarter earnings. Consensus estimated EPS to be $0.39 and it turned out to be $0.39, worse than the analyst estimate by $0.04, a surprise of -9.85%. The revenue estimated by consensus was $199.35 Million but Lucid Group reported 149.4 Million.

Lucid group might enter into the penny stock category if it drops below $5. Lucid group stated that the company will be producing 10000 to 14000 vehicles in the year 2023 but Lucid Group modified this to a less ambitious sounding goal of making at least 10000 vehicles.

Price cuts by the world’s major automobile makers Tesla and Ford Motor have made it more difficult for companies such as Lucid Group and rivian automotive to gain market share in this industry.

Will LCID Price Escape Consolidation Phase In Month Of May?

RSI trades at 47.22, indicating that LCID price is facing the same level of pressure from bulls as well as bears. LCID stock price is also trading below all the major EMAs indicating bearish momentum in the price. The Chaikin money flow score is 0.14, suggesting that there is bullish strength in the market and price might retest the resistance level of $8.70.

The bands of Bollinger have contracted, indicating less volatility in the market. LCID price has crossed the 20-day SMA of Bollinger bands and is headed toward the upper band, which resides at the $7.98 level.

Conclusion

LCID stock price has started to gain bullish momentum and is currently headed toward the recent resistance level of $8.70. The market structure and price action suggest that the bulls have started to step in to protect the price from further downfall. The technical parameters also suggest the same.

Technical Levels

Major support: $6.70 and $6.10

Major resistance: $8.70 and $11.15

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.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing