Lucid (NASDAQ: LCID) stock price is trading below the $6.18 key level. The stock of the EV manufacturer has slid 3.25% below the major support level and may drop further if the current bearish sentiment sustains. Lucid shares are changing hands at $5.99 on Friday, down 0.42% till press time.
Wall Street Averages showed losses on Friday, which was mostly attributed to TSMC asking for delays from its chip maker vendors and the recent recovery in treasury yields. The NASDAQ 100 Index declined by 125 points, whereas the S&P500 Index and Dow Jones Index fell by 0.61% and 0.31%, respectively.
The American EV producer has expressed its intentions to start selling their cars in the Chinese market. Lucid is also expected to increase its production range and start manufacturing cars in the lower price categories. The company aims to enter that market segment by 2026, where cars are priced at around $20,000.
In other news, Lucid announced its Q2 earnings report in August. The EV manufacturer reported a $150 million in revenue, as compared to last year’s $97.3 million. However, the company reported a $0.4 loss per share due to a reduction in deliveries from the previous quarter. Lucid stock is down 53.7% from its yearly high.
The chart of NASDAQ: LCID shows the price broke under the $6.18 level, which I predicted in my previous forecast. A deeper analysis of the chart also reveals a downward trendline that the price has been respecting since September 2022.
The Lucid stock price prediction has flipped bearish as the price has broken below a key support area. If bulls fail to reclaim $6.18 soon, I expect a retest of the $5.5 support level, which is also the June low. In case of a deeper correction, a retest of the middle of the pitchfork is very likely, which lies below $4.
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This post was last modified on Sep 15, 2023, 17:11 BST 17:11