- Luminar Technologies (NASDAQ: LAZR) Lidar unit will be a part of upgraded hands free driving system that Mercedes Benz plans to roll out soon
- LAZR stock price shot up 28% and witness huge spike in buying volume
- NASDAQ: LAZR stock has reclimb above the 50 day EMA and formed a bullish engulfing pattern
Luminar Technologies Inc (NASDAQ: LAZR) stock price is trading with the bullish cues and bulls have shown strong signs of trend reversal but the confirmation is still awaited.
Luminar announces a deal with Mercedes Benz which states that the Luminar Lidar unit will be part of an upgraded hands free system which Mercedes Benz plans to roll out soon and under the expanded deal, Mercedes Benz will incorporate its sensors as well as softwares in a broad range of vehicles which will give next level of experience to the customers.
In the previous session NASDAQ: LAZR stock price closed at $7.40 with the intraday gains of 28.81% and market cap stood at $2.684B
Luminar stock rally sustainable ?
Luminar Technologies Inc (NASDAQ: LAZR) stock price has shown a sharp bounce back from the support levels and formed a bullish engulfing candle clearly shows that the market has reacted positively to the recent expansion of deal with Mercedes Benz which has triggered a short covering rally in LAZR stock and prices shot up 28% on the intraday basis.
In the mid of January, LAZR stock bulls managed to push the price above the 50 day EMA which has derived the positive sentiment and prices rallied 30% approx in a short span of time but unfortunately price did not get the follow up momentum and took a halt at swing high $8.24. Later, market sentiment turned negative and bears came forward to drag the prices in a downward direction.
Luminar stock bears had attempted to break down the important support level of $6.00 but due to the recent news of deal with Mercedes has completely reversed the direction and prices again seem to be returning back to the bullish track. However, the prices are racing towards the supply zone at $8.24 which will act as immediate resistance in the coming sessions and if bulls succeed to break out of $8.24 then LAZR stock may begin the journey toward $10.00. The technical indicators like MACD is sloping upward and on the way to generate a positive crossover but the confirmation is still awaited whereas the RSI at 57 pointing north denotes more room for upside is open to the bullish traders.
Summary
Luminar Technologies Inc (NASDAQ: LAZR) stock price has shown a surprising recovery of 28% on the intraday basis due to its Mercedes Benz deal and formed a bullish reversal pattern but if we look in the financials of the company then it shows that the company is struggling to become profitable and the earnings are continuously on a declining phase which might create trouble for the long term investors.
Technical levels
Resistance levels : $8.24 and $9.29
Support levels : $5.73 and $3.92
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.
Source: https://www.thecoinrepublic.com/2023/02/23/luminar-price-surged-28-after-expansion-of-mercedes-benz-deal/