Despite a new capital raise that was just announced, shares of electric vehicle maker Lucid Group Inc. (LCID) gapped lower Thursday. Let's check out the charts and indicators to see if LCID can get on the road to a recovery rally.
In the daily bar chart of LCID, below, I can see that the shares have been weak for a long time. LCID trades below the declining 50-day moving average line and the bearish 200-day line.
The On-Balance-Volume (OBV) line has been weak. The Moving Average Convergence Divergence (MACD) oscillator has been improving for months but is still slightly below the zero line.
In the weekly Japanese candlestick chart of LCID, below, I see a weak chart picture. The shares trade below the declining 40-week moving average line.
The trading volume has been declining suggesting a lack of investor interest. The OBV line is in a longer-term decline. The MACD oscillator is bearish.
In this daily Point and Figure chart of LCID, below, I can see a potential downside price target in the $8 area.
In this weekly Point and Figure chart of LCID, below, the software projects a price target in the mid-$8 area.
Bottom-line strategy: LCID has investors with deep pockets but that has not helped the stock price. Avoid the long side of LCID.
