LCID Stock Price Prediction: Lucid Eyes Saudi Arabia Markets

LCID stock formed a bearish price movement and fell by 18.43% spanning over a month as Lucid Group faces problems in the home EV market. The electric vehicle (EV) manufacturer Lucid Group is eyeing the Saudi Arabian market. Tapping new markets as a potential revenue source is a strategic damage control for Lucid.

U.S. Problematic for Lucid; Saudi a Chance?

Lucid Group makes luxurious vehicles but at a very high rate. The base level models begin from $87,400, while other EV models can reach $179,000, which leaves the benefit of $7,500 tax credits from the U.S. government not of any use. This, in turn, will make it difficult for Lucid Group to compete with its rivals during the inflationary markets.

Shareholders hope Lucid will excel in other countries, so they target the Saudi Arabian market. Saudi Arabia’s sovereign wealth fund, or the Public Investment Fund (PIF), added about $1 billion positions in LCID stock earlier this year. There are also rumors that PIF wanted to take over Lucid Group completely.

Moreover, Saudi Arabia’s government allegedly committed to buying 100,000 Lucid EVs over a decade. Lucid has already commenced delivering its Air model EVs to the country. However, prospective LCID stock investors wait for the financial results from Lucid’s invasion into the Saudi EV market before placing any trades.

LCID Stock Price Action

LCID stock formed a falling trend since February, amplified after the revenue report was rolled out. The trading volume records no drastic participation and remains contained. The EMA ribbon forms a possible bullish cross (green circle), suggesting a price reversal.

LCID stock price retraces from the support near $7.25, concerning probable bullish momentum. The price currently moves in the first level of Fib retracement level and tries to reclaim the declining streak. The projected reversal can turn into a rally once the Saudi Arabian market experiment is successful. The RSI rises close to the half line indicating buyers are slightly interested in LCID stock. The MACD forms a positive cross and hints at buyers gaining dominance.

Conclusion

Lucid Group targets Saudi Arabian markets to curb the crisis it faces in the U.S. markets. The LCID stock hints at a price reversal, leveraging this new plan. The potential investors await the financial results of the Arabian markets. The price movement indicates a temporary rally in the coming months. The holder can trust the support near $7.25.

Technical levels

Support levels: $7.25 and $6.10

Resistance levels: $11.27 and $17.78

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and 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