Key Takeaways
- Lucid shares jumped 36% Thursday on information the EV startup is partnering with self-driving software program maker Nuro and rideshare large Uber Applied sciences to carry a brand new group of robotaxis to Uber’s platform.
- After consolidating just under the 50-day shifting common in current weeks, the inventory staged a volume-backed breakout in Thursday’s buying and selling session, doubtlessly setting the stage for observe by shopping for.
- Traders ought to watch vital overhead areas on Lucid’s chart round $3.60, $4.35 and $5.30, whereas additionally monitoring an key help stage close to $2.50.
Lucid Group (LCID) shares surged Thursday on information the EV startup is partnering with self-driving software program maker Nuro and rideshare large Uber Applied sciences (UBER) to carry a brand new group of robotaxis to Uber’s platform.
The deal will see at the least 20,000 self-driving Lucid automobiles enhanced with Nuro’s autonomous driving software program added to Uber’s community over the subsequent six years in trade for Uber investing a whole lot of hundreds of thousands of {dollars} in each firms.
Following the partnership announcement, analysts cautioned that the businesses could face challenges scaling as quick as Uber needs, stating that Tesla and Google mum or dad Alphabet’s (GOOGL) autonomous automobile firm Waymo have scale and know-how benefits over Lucid and Nuro. Final month, Tesla (TSLA) launched its personal robotaxi service in Austin, Texas as competitors within the self-driving taxi market accelerates.
Lucid shares jumped 36% to shut Thursday’s session at $3.12. With at this time’s pop, the inventory is up practically 60% from this month’s low however nonetheless 18% decrease over the previous 12 months, weighed down by heavy losses, capital raises, and a string of analyst downgrades.
Under, we take a better take a look at Lucid’s chart and establish value ranges that buyers will probably be watching.
Quantity-Backed Breakout
After consolidating just under the 50-day shifting common in current weeks, Lucid shares staged a decisive breakout in Thursday’s buying and selling session, doubtlessly setting the stage for follow-through shopping for. Importantly, the pop occurred on the best quantity because the firm debuted on the Nasdaq in July 2021, suggesting conviction behind the transfer.
Right now’s breakout additionally raises the chance that the inventory has accomplished a triple backside, with three distinct troughs forming at roughly the identical stage on the chart between November and July. In the meantime, the relative power index confirms bullish value momentum, although the indicator has crossed into overbought territory, rising the probabilities of short-term profit-taking.
Let’s establish three vital overhead areas to observe on Lucid’s chart and in addition level out a key help stage price monitoring.
Overhead Areas to Watch
The primary overhead space to observe sits round $3.60. This space on the chart might present promoting strain close to the outstanding January and February peaks, which additionally carefully align with a quick countertrend upswing in late September final yr.
Shopping for above this space might see the shares climb towards $4.35. The value could encounter resistance at this stage close to notable peaks that shaped on the chart final July and August.
Additional bullish momentum might drive a rally to $5.30. Traders who’ve purchased at decrease costs could resolve to lock in earnings on this area close to the foremost December 2023 swing excessive that emerged throughout a steep downtrend within the inventory.
Key Help Stage Value Monitoring
If Lucid shares retrace after at this time’s sturdy transfer, buyers ought to maintain an in depth eye on the $2.50 stage. This location would probably entice shopping for curiosity close to the 200-day MA and a trendline that connects a sequence of corresponding value motion on the chart stretching again to final yr’s June swing low.
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