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Mullen Automotive (MULN) Stock: Time’s Up For MULN Stock

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Mullen Automotive (MULN) stock witnessed a drop of 12.24% on the last trading day and has been printing a bearish candle for the last six days. The stock price recently broke the major psychological level of $1 and melted to form a support at $0.42. 

MULN stock price then commenced a bullish rally but the move was halted after the price touched the $0.96 level. The current market structure shows that the stock is headed toward the $0.42 support. 

Mullen Automotive (MULN) Stock: Time’s Up For MULN Stock
Source: MULN Stock Price By TradingView.

Mullen Automotive On Death Floor

Mullen Automotive stock price needed to close above at or above $1 for at least 10 consecutive days before Sept 5. Time will be finished for the company to gain Nasdaq compliance as of Today (SEPT 5). 

The stock already fell more than 99% this year. The current scenario shows that Mullen has not been able to gain compliance on time and risks being delisted from Nasdaq. Nasdaq, back in March, stated that if compliance is not demonstrated by September 5, 2023, staff will provide a written notice that the company’s securities will be delisted. 

In May, the automotive company initiated a 1 for 25 reverse split. Just a few months later, Mullen again commenced a reverse split of 1 for 9. Mullen also alleges that the brokerages have tried to manipulate the share price of the company’s securities. 

The chief executive officer of Mullen, David Michary stated that witnessed a decline in share price despite successful suspects of illegal short-selling activities. 

MULN stock price has closed below $0.50 and if the bearish momentum can break the support level of $0.42, the stock price might fall down toward $0.20. On the other hand, if $0.42 support sustains the price, it might retest the resistance level of $0.90. 

Will MULN Stock Price Stay Above $0.42?  

Mullen Automotive (MULN) Stock: Time’s Up For MULN Stock
Source: MULN Stock Price By TradingView.

Chaikin money flow (CMF) score has been trading below the 0 mark since 26 June 2023, indicating a strong confluence of bears which supports the price action. CMF stands at -0.26 suggesting strong weakness in the stock price

The relative strength index fell below the 30 mark which indicates the possibility of a short-term pullback but the bearish momentum is strong and the price needs to form support before making any bullish move. 

MULN stock price slipped below all the major exponential moving averages, indicating bearish momentum. The Bollinger bands have also contracted which indicates a decrease in volatility. 

Conclusion 

The market structure and price action of Mullen Automotive are strongly bearish. The deadline ends today (September 5) for keeping Mullen’s stock price at or above $1. Now that Mullen Automotive is headed toward the pink sheet or over-the-counter, fewer shareholders will stay interested in the stock.

Technical Levels 
  • Major support: $0.42 and $0.20
  • Major resistance: $0.90 and $1.25
Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

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