Lucid Group Rallies Toward Possible Resistance

Lucid Group Inc. LCID shares are trading higher Monday, possibly in sympathy with Tesla Inc TSLA as the stock has hit the $1,000 level. Lucid stock is also pushing higher but is reaching an area where it may find resistance.

Lucid is trading up 9.46% at $26.39 at last check Monday afternoon.

Lucid Daily Chart Analysis

• The stock pushed higher Monday and now is nearing resistance in what technical traders call a sideways channel.
• The $30 price level is an area the stock has found resistance in the past and may hold as resistance again in the future. The $17 level is an area the stock has seen support in the past and it might be somewhere the stock could find a bounce in the future.
• The stock is trading above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the sentiment in the stock has been bullish.
• Each of these moving averages may hold as a possible area of support in the future.
• The Relative Strength Index (RSI) has been pushing higher the past few days and now sits at 63. This push higher shows the stock is now seeing more buying pressure than it is selling pressure.

Bullish traders are hoping to see the stock continue to push higher and break above the $30 resistance level. Bulls are then looking to see a period of consolidation above this level for the stock to possibly continue pushing higher on its run.

Bearish traders are looking to see the stock get rejected at the resistance line and start fading back lower. Bears would then want to see the stock fall back toward the $17 level and be unable to hold above the level. If the $17 level began to hold as resistance, it may show the stock is ready to see further bearish pushes in the future.

Photo: Lucid Group