Key takeout
Lucid Group (LCID) stocks surged Thursday News EV Startup will partner with self-driving software makers Nuro and Rideshare Giant Uber Technologies (Uber) to bring a new group to Uber’s platform.
The deal will boost at least 20,000 self-driving, bright-driving vehicles, powered by Nuro’s autonomous driving software added to Uber’s network over the next six years, in exchange for Uber’s investment of hundreds of millions of dollars.
Following the announcement of the partnership, analysts warned that companies could face challenges of scaling as fast as Uber would like, noting that Waymo, a self-driving car company from Tesla and Google (Googl) has more scale and technology advantages than Lucid and Nuro. Last month, Tesla (TSLA) launched its own Robotaxi service in Austin, Texas, accelerating competition in the autonomous taxi market.
Lucid shares rose 36%, closing Thursday’s session at $3.12. In Pop today, stocks have risen by nearly 60% from this month’s low, but have been 18% lower in the last 12 months, down by massive losses, salary increases and analyst downgrades.
Below we take a closer look at Lucid’s charts to identify the price levels investors are looking at.
Volume back breakout
After slightly below its 50-day moving average in recent weeks, Lucid shares could have made a decisive breakout in Thursday’s trading session, setting the stage for follow-through purchases. Importantly, the POP has occurred at the highest volume since the company debuted on Nasdaq in July 2021, suggesting the conviction behind the move.
Today’s breakout also raises the likelihood that Stock completed the triple bottom, forming three different troughs at roughly the same level on the chart between November and July. Meanwhile, the relative strength index confirms bullish price momentum, while the indicators increase the likelihood of short-term profits across acquired territory.
Identify three important overhead areas that monitor Lucid’s charts and point out the key support levels that are worthy of monitoring.
Overhead area to watch
The initial overhead area of viewing is around $3.60. This area on the chart could provide sales pressure near the prominent January and February peaks. This is closely linked to the rise in the short counter trend in late September last year.
Buying over this area can cause your shares to rise to $4.35. Prices can encounter resistance at this level near the notable peaks that formed on the charts in July and August last year.
Even more bullish momentum could drive the rally to $5.30. Investors who buy at a low price may decide to lock in profits for this area near the main swing high in December 2023.
Key support levels worth monitoring
If Lucid shares a retrace after today’s strong move, investors should pay attention to the $2.50 level. The location could attract interest on purchases near 200 days of MA, and a trendline connecting a series of corresponding price actions on a chart that dates back to last June’s swinglow.
Any comments, opinions and analysis expressed on Investopedia are for informational purposes only. Read the Warranty and Liability Disclaimer for more information.
As of the date this article was written, the author does not own the above securities.
