Mullen Automotive Inc. stock has performed poorly this year, wiping out more than 99% of investors’ wealth. Although this year has not been well for EV stocks, the MULN stock performed poorest among them.
Mullen Automotive, Inc. is a company involved in the manufacturing of electric vehicles. The company makes passenger and commercial EVs and indulges in solid-state polymer battery technology. The company operates from Brea, California.
Is It a Game Over For The Mullen Stock?
MULN stock is in a risky state as the company is making revenue of less than 1 Million ($308K) and also, less than one year of cash. Moreover, the company’s earnings have been decreasing (83.1%) continuously over the 5 years and shareholders also diluted over the past year.
At the time of writing, the company has an earnings per share (EPS) of -2.54, a gross margin of -250.45%, and a net profit margin of -340,795.62%. Additionally, the company has a debt-to-equity ratio of 2.1%. The data shows that the financial health of the company is not so good.
What Technical Charts Tell About The Mullen Stock?
Mullen’s stock price has been struggling to break above the key resistance level and has been stuck below it. Currently, Mullen shares need more buyers to support an upward movement toward recovery. However, the trading volume is low, which indicates a lack of interest and momentum. At the same time, Mullen shares have broken below the 20, 50, 100, and 200-day daily moving averages, which are bearish signals.
Mullen’s stock price lost 36.43% last week; it fell by 57.88% in the month. Moreover, MULN shares have declined about 98.40% in the past six months and a plunge of 99.70% over the past year.
Also, the MULN share price has dropped by around 99.73% year to date. These trends collectively show the destruction of the major wealth of holders.
Technical indicators suggest the downside trend of Mullen’s stock price. Relative strength index showcases and moving average convergence divergence both indicate the slippage of Mullen’s share price.
The price at present requires substantial support from the buyers in order to make a recovery as it is facing major resistance from the previous resistance points and multiple moving average levels. Buyers are pulling the price action into their grasp, according to the candlestick patterns.
The price may soon attempt to make a bullish recovery. However, as it is trading below the key EMA levels, the buyers will have to face multiple resistance levels to attain the target. Buyers are presently making continuous efforts to retake charge of the trend.
On the daily charts, Mullen stock shows sellers’ dominance and slipped below neutrality, showing a negative outlook on the charts. Moreover, the price dropped below the lower Bollinger band. Overall, the technical indicators and price action suggest that Mullen’s stock is bearish and that the downtrend may continue.
Indicators Evaluation Of Mullen Stock
At the time of publishing, Mullen stock (NASDAQ: MULN) is trading below the 50 and 200-day SMAs (simple moving averages), supporting the price trend.
The current value of RSI is 31.72 points. The 14 SMA is above the median line at 31.72 points which indicates that the Mullen stock is bearish.
The MACD line at -0.0580 and the signal line at -0.616 are above the zero line. A bearish crossover is observed in the MACD indicator which signals more bearishness for the MULN stock price.
Summary
Mullen stock (NASDAQ: MULN) technical oscillators also support the bearish trend. The MACD, RSI, and EMA are emphasizing negative signs and imply that the downtrend may continue in the MULN stock price. Mullen Price’s action suggests that the investors and traders are bearish on the 1-D time frame. The price action reflects a bearish perspective at the moment.
Technical Levels
Support Levels: $0.1800 and $0.1700
Resistance levels: $0.6516 and $1.00
Disclaimer
This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your own research before making any financial decisions.
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.
Source: https://www.thecoinrepublic.com/2023/11/12/mullen-stock-will-muln-stock-comeback-or-collapse-down/