Lucid Group Needs To Bounce At Support Or Things Could Get Ugly

Lucid Group Inc LCID shares are trading lower Wednesday as the share lockup period expired for PIPE investors. This is the first day some of Lucid's biggest stakeholders can sell their stock since the company's SPAC merger in July.

Lucid Group was down 10.87% at $17.79 at last check Wednesday.

See Also: Why Lucid Group Shares Are Trading Lower Today

Lucid Group Daily Chart Analysis

• Shares gapped down past support, but have since bounced back above the level.
• The $17 is an area the stock has been able to find support at before. This level held as support today and may again in the future. The $30 level is an area that has acted as resistance in the past and may again in the future.
• The stock is trading below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the sentiment in the stock has been bearish.
• Each of these moving averages may hold as a possible area of resistance in the future.
• The Relative Strength Index (RSI) saw a big dip and now sits at 26. This is well into the oversold range and the stock has been seeing more selling pressure than buying pressure in recent days.

What’s Next For Lucid Group?

Bullish traders are looking for the stock to begin to form higher lows. Bulls would then like to see the stock build up to the $30 resistance level before seeing a break above.

Bears would like to see the stock fall below the $17 support level and begin to hold it as resistance. If the stock can begin to hold this level as resistance then it may be a clue that the stock could be ready to see a bearish push.

Photo: Lucid Group