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- 1 LCID price faces rejection at $8.65; falls to the lower band of the channel.
- 2 Lucid Group witnesses a horizontal range-bound movement.
Lucid Group is in a range bound movement, forming a horizontal consolidation channel. The LCID stock price recently faced rejection at the upper band of the channel, causing it to drop to the lower band, near the support. The EV company shows a stagnant market as the non-financial aspects cause trouble in price action.
Last Week, Lucid Group was in a downtrend after the electric automaker disclosed first quarter production and delivery numbers which were lower than the previous quarter. Analysts placed their bets on a slow first quarter, but did not expect a wide gap in the actually reported figures.
The California-based luxury EV producer is struggling with production and deliveries. The disclosed figures were a far cry from previous quarter’s figures. Lucid produced 2,314 vehicles per the report. The number was 3,493 in the previous quarter. Similarly, the deliveries made were 1,406, in comparison to 1,932 from the previous quarter.
LCID Stock Price Analysis
LCID stock price has been consolidating for quite some time now. The price is facing difficulty in breaking the channel as the $8.65 price level acts as a strong resistance. The rejected price falls to the support near $7.40 and can retest the resistance levels. The price moves within the first level of Fib retracement and struggles to reach the higher ones. The EMA ribbon majorly floats above the current price action, indicating a bearish trend prevailing in the market.
The Bollinger bands contracts to show a pushed-down price action. The MACD continues under a narrow positive cross and records stagnant buyer action. The MACD cross could turn negative temporarily as the sellers cast a shadow over LCID stock price. The RSI falls in the region below the half line, reflecting a decline in buyer interest for Lucid Group. The fall in RSI may continue till it reaches the floor range and test the selling pressure.
Conclusion
Lucid Group is entrapped in a consolidation channel and faced constant rejection near the resistance of $8.65. The bearish trend in LCID stock price action indicates a continuing trend till the prevailing selling pressure is diluted. Prices may test the support near $7.40 and try to breach the channel, and if successful, can reach beyond $10 price level.
Technical levels
Support levels: $7.40 and $6.10
Resistance levels: $8.65 and $10.45
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
