Will LCID Stock hold $6 Level ?

Lucid Group Inc. (NASDAQ: LCID) stock fell 7% approximately in the previous week. It is down by 19% in the current month and erodes the complete gains generated after quarter earnings.

LCID stock formed a bearish pattern and is trading near to the 52-week low. It shows the dominance of sellers on the higher levels. Short-term pullback rally is facing difficulty and getting a strong rejection.

Lucid Group Inc. (NASDAQ: LCID) released the previous quarter earnings on August 7, 2023. It reported an EPS of -0.40 and revenue of $150.874 Million. However, the earnings estimated by analysts is -0.342, and revenue of $181.58 Million.

Lucid Group Inc. missed the revenue estimate by 16.91% and the EPS estimate by 17.03%. Despite that, stock prices reacted positively and surged 12.17%.

Lucid Stock tried to reclimb above the 50-day EMA to regain the confidence of investors. But the up move was temporary and sellers again took over the control from the higher levels.

Lucid Stock price closed the previous session at $6.18 with an intraday decline of 0.80%. The market capitalization stands at $14.11 Billion.

Will Lucid Group Inc. (NASDAQ: LCID) Stock Recover?

Lucid Group Inc (NASDAQ: LCID) stock is in a downtrend and sellers seem to be more active as compared to buyers.

On the lower side, $5.47 will act as a strong support for the bulls. Moreover, it will be interesting to see how the prices react at the 52-week low.

In mid of June, LCID stock took support near $6.00 and showed a decent recovery of 52% in just two weeks. However, at present if LCID stock tests $6.00 the probability of a bounce is low.

The major indices like S&P 500 and Nasdaq 100 are reversing from the high. Due to this, the Automobile and technology sectors’ stocks might get negatively impacted. Therefore, the probability of recovery in LCID stock remains low.

LCID Stock Underperformed Its Competitors

LCID stock price has underperformed its peers in 2023. It shows that investors are losing confidence and remain doubtful about the future outlook of the company.

Lucid Group Inc. is reporting losses in quarterly results and sales were also going down. It shows that the company’s balance sheet is weak and debts are high. Due to this, the LCID stock might face difficulty to recover in the coming months.

Conclusion

Lucid Group Inc. (NASDAQ: LCID) stock fell 19% in the current month and also eroded the gains generated after earnings. The technical analysis suggests LCID stock is inside the bearish grip due to which $6.00 support is at risk.

Technical levels

Resistance levels: $7.34 and $8.37
Support levels: $5.47 and $5.00

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