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- Lucid stock price has been slipping through a declining pattern and Lucid (NASDAQ: LCID) shares might rally after leaving the downtrend, suggests analysts.
- Lucid Group, Inc. (NASDAQ: LCID) stock price has been declining through an interesting falling pattern after testing the $17.82 resistance level.
- LCID share price has been trying to oppose the current downtrend to make an escape route and initiate its rally of 2023 as analysts speculate.
Lucid stock price has been trading inside the declining parallel channel while trying to sustain and revert back out of the channel. Analysts also confirm the upcoming rally of Lucid share price to recover towards the $20 recovery level. LCID share price needs to skip this declining streak in order to sustain and bounce back from the current level.
While LCID shares have already demonstrated their potential, they have the potential to rise from their present level. For the Lucid stock price to start its rally for $20.00, it must surpass the primary resistance mark of $9.00 and rise above $10.00.
Some reports from an esteemed financial organization also confirmed the upcoming rally from LCID shares during 2023. This is because the Lucid Group Inc (NASDAQ: LCID) is trying to maintain its dignity among all other EV companies like Rivian, Tesla, Nio, EVGO, GEVO etc.
However, some EV utilities manufacturers are facing issues regarding their sustainability in the EV market among market leaders like Tesla. Lucid Group Inc is believed to be the better choice among all other EVs, according to the reports stating the analogy of Tesla and Lucid in the Electric Vehicles market.
Lucid stock price has been slipping through a declining channel over the daily time frame chart. However, analysts believe that LCID shares might initiate its rally as soon as it escapes the falling pattern. However, volume change is below average and needs to grow on Monday’s trading session.
However, Lucid share price has dropped below 20, 50, 200 and 200-days Daily Moving Average. With the weekly loss of around 9.23% Lucid stock price was at 7.87% and has lost 1.62% of its market capitalization during Friday’s trading session.
Time to Stake Lucid Stocks, Know Why?
Since the SPAC started trading a few years ago, the Lucid stock price (NASDAQ:LCID) has been on an exhilarating rollercoaster. Let’s be honest. Lucid won’t soon start to turn a profit. It won’t matter, though, if the business can ultimately get to the point where it can successfully compete with Tesla.
The vehicle lineup from Lucid is diverse, with prices varying from about $87,000 to about $250,000. Thus, there is a Lucid that is suitable for basically “everyone.” In the upcoming years, the business should significantly increase production capacity.
Also like high-end Teslas, Lucid has a distinctive appearance, branding, and performance. So, if another 100% EV manufacturer will challenge Tesla’s monopoly in the coming years, my money is on Lucid. Additionally, there have been some worries about Lucid’s output estimates being off, but we previously observed a similar phenomenon with Tesla.
Moreover, the PIF, a Saudi Arabian wealth fund, raised its stake in Lucid last quarter and now owns a sizable portion of the company (roughly 66% of all shares). A potential buyout from the Saudi nation is also reportedly on the way.
Whether the Saudis fully acquire Lucid or not, the business is very capable of increasing production; it expects to produce between 10,000 and 14,000 vehicles this year. Additionally, 2024 output ought to significantly increase, pushing the company’s share price significantly higher in the ensuing years.
Analysts appear to be drifting along as their absurdly low sales and EPS projections may be exceeded. As a result, I am increasing my position in Lucid before this stock experiences another surge shortly.
This is basically a summarization of a report from Seeking Alpha’s one of the profound analysts. He suggested to stake Lucid stocks before it’s too late and has also highlighted key factors affecting Lucid’s fall like risks associated and the Lucid – Tesla analogy.
Will Lucid Stock Price Reach $20 from Here?
Lucid stock price has been trying to escape the descending parallel channel over the daily time frame chart. Technical indicators suggest the downtrend momentum of LCID stock price.
Relative strength index showcases the downside trend of LCID shares. RSI was at 36 and is moving towards oversold territory. MACD exhibits the downward velocity of Lucid stock price. The MACD line is below the signal line after a negative crossover.
Investors in Lucid Group, Inc. (NASDAQ: LCID) stocks need to wait until the Lucid stock price breaks out of the primary resistance level at $9.00 to remain above $10. In the meantime, Lucid stock price must sustain above $10 to reach $20 through $11.70, $13.00 and $17.82 respectively by the end of 2023.
Summary
Lucid stock price has been trading inside the declining parallel channel while trying to sustain and revert back out of the channel. For the Lucid stock price to start its rally for $20.00, it must surpass the primary resistance mark of $9.00 and rise above $10.00.
Analysts appear to be drifting along as their absurdly low sales and EPS projections may be exceeded. Technical indicators suggest the downtrend momentum of LCID stock price. As a result, I am increasing my position in Lucid before this stock experiences another surge shortly.
Technical Levels
Support Levels: $7.45 and $7.00
Resistance Levels: $9.00 and $13.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto or stocks comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
