Lucid (LCID) Stock Price Plunged Nearly 80%, Should You Keep It in the Portfolio?

• NASDAQ:LCID share price has been falling steadily for the past four weeks.
• In the last one year, investors have lost about 82.7 per cent.
• As per the Fib retracement, LDIC stock may rebound towards the $5.0 level.

Lucid Group Inc. is underperforming despite positive global market note. NASDAQ: LCID stock price caught by short sellers at the end of FY2021, after each rise has turned into heavy selling so far. As a result, investors are facing a loss of 82.7% in the last 52 weeks.

In the past few weeks, the trading volumes were seen in extreme phases, and the bears were also aggressively dumping the asset. This week, sellers are drawing a fourth consecutive red candle with a decline of 4.78%.

Due to sharp selling, buyers have lost conceptual round level of $10, which was the key defending zone. As of now, LCID stock price has a key resistance zone at $10. On the flip side, asset price hit latest annual low at $6.18 on 27 December, and further price decline is likely ahead.

In the letter of 28 December, NASDAQ: LCID stock price displayed little positivity and its closing price is $6.38 mark along with 2.9% gain. Meanwhile, trading volume rose this week and it reported at 27.97 million, less than average volume. In addition, the market capitalization is present at 10.72 Billion USD. 

Here is Next Support Level

After breaking all the important support levels, the buyers are looking for a strong support level. According to the Fib retracement, LDIC share price may bounce-back towards the $5.0 level (noted on the chart). On the flip side, the sellers have an important defense zone at $10.

Traditional technical indicators show sharp bearishness in LCID share price as ADX stands at 42 level, supporting strong momentum in the downside momentum, as well as RSI indicator clocks in the oversold zone.

Conclusion

NASDAQ: LCID share price is bidding at the cheapest price ever. The bears are aiming for more downside in the price as per the trading volume while the ADX indicator strongly supports the bearish trend.

Support level – $6.0 and $5.0

Resistance level – $10 and $20

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.

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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