Lucid Inventory Soared on Information of Robotaxi Partnership With Uber, Nuro—Watch These Key Ranges

Lucid Group (LCID) shares surged Thursday on information the EV startup is partnering with self-driving software program maker Nuro and rideshare big Uber Applied sciences (UBER) to convey a brand new group of robotaxis to Uber’s platform.

The deal will see not less than 20,000 self-driving Lucid automobiles enhanced with Nuro’s autonomous driving software program added to Uber’s community over the following six years in trade for Uber investing tons of of hundreds of thousands of {dollars} in each firms.

Following the partnership announcement, analysts cautioned that the businesses might face challenges scaling as quick as Uber desires, stating that Tesla and Google father or mother Alphabet’s (GOOGL) autonomous car firm Waymo have scale and expertise 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 in the present day’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.

Beneath, we take a more in-depth have a look at Lucid’s chart and determine worth ranges that traders will probably be watching.

Quantity-Backed Breakout

After consolidating slightly below the 50-day transferring 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 very best quantity because the firm debuted on the Nasdaq in July 2021, suggesting conviction behind the transfer.

Right this moment’s breakout additionally raises the likelihood that the inventory has accomplished a triple backside, with three distinct troughs forming at roughly the identical degree on the chart between November and July. In the meantime, the relative power index confirms bullish worth momentum, although the indicator has crossed into overbought territory, growing the probabilities of short-term profit-taking.

Let’s determine three vital overhead areas to look at on Lucid’s chart and likewise level out a key help degree value monitoring.

Overhead Areas to Watch

The primary overhead space to look at sits round $3.60. This space on the chart might present promoting stress close to the outstanding January and February peaks, which additionally intently align with a quick countertrend upswing in late September final 12 months.

Shopping for above this space might see the shares climb towards $4.35. The value might encounter resistance at this degree close to notable peaks that shaped on the chart final July and August.

Additional bullish momentum might drive a rally to $5.30. Buyers who’ve purchased at decrease costs might resolve to lock in income on this area close to the foremost December 2023 swing excessive that emerged throughout a steep downtrend within the inventory.

Key Help Degree Price Monitoring

If Lucid shares retrace after in the present day’s sturdy transfer, traders ought to hold an in depth eye on the $2.50 degree. This location would probably appeal to shopping for curiosity close to the 200-day MA and a trendline that connects a sequence of corresponding worth motion on the chart stretching again to final 12 months’s June swing low.

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As of the date this text was written, the writer doesn’t personal any of the above securities.