Lucid Group ( LCID) got a bearish review from us back on Aug. 30, with downside price targets that have been reached. As the shares of this electric vehicle maker have been sliding this week, let's kick the tires and the charts again.
In this daily bar chart of LCID, below, we can see that prices have been under selling pressure the past 12 months. LCID trades below the declining 50-day moving average line and below the declining 200-day line. Trading volume has increased in November and with the new lows being set suggest that traders have been voting with their feet. The On-Balance-Volume (OBV) line shows weakness from early August. The Moving Average Convergence Divergence (MACD) oscillator is bearish.
In this weekly Japanese candlestick chart of LCID, below, we see a bearish picture. Prices are in a longer-term downward trend and trade below the negatively sloped 40-week moving average line. The weekly OBV line is pointed down and the MACD oscillator is bearish.
In this daily Point and Figure chart of LCID, below, we can see that prices reached and exceeded a downside price target in the $12.50 area.
In this weekly Point and Figure chart of LCID, below, we see a lower price target in the $8 area.
Bottom line strategy: LCID's charts and indicators are bearish and pointed lower. Avoid the long side of LCID.
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Performance is excellent, free cash flow is robust, guidance is solid and sales are growing. Here's my one nitpick and how to play the stock.
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