Throughout the year, the Arrival share price has been in a strong bearish trend which has seen it lose 90 per cent of its value. However, earlier this week, the share price started to show signs of improvement, and at one point, the prices were up by more than 35 per cent from the weekly price lows of $0.62. This was after a 20 per cent price surge In Tuesday’s trading session, which reversed the downward trend the share prices had been trading.
However, during yesterday’s trading session, the Arrival share price looks to have resumed the long-term bearish trend after the company dropped by 6 per cent of its value. The resumption of the downward trend also offered a snapshot of future trading being aggressively bearish.
Part of the reason for the current drop is due to the company’s internal struggles. Last week, reports confirmed that the electric vehicle makers would be cutting jobs in a bid to pivot away from the UK and focus their operations in the US. it was the second time in six months that the company had implemented a restructuring, further cementing previous reports of internal struggles.
The move will see the company moving most of its operations from its headquarters in the UK to the US. The UK is also where they had planned to release their EV vans. Although the company did not specify the number of jobs they planned on cutting, their regulatory filing pointed out that a significant number of employees would be affected.
Looking at the chart below, it is clear that the current trend is aggressively bearish. This is despite the company surging by 20 per cent on Tuesday and having one of its best weeks in the past year.
Therefore, based on the fundamental analysis above and the recent price action, I expect the current bearish trend to continue. We may see the Arrival share price dropping below this month’s price low of $0.62 again and possibly falling to as low as $0.5. However, a trade above $1 will invalidate my analysis.
This post was last modified on %s = human-readable time difference 11:43