Lyft Analysis: Is This Ride-Sharing Stock About To Breakdown? - Lyft (NASDAQ:LYFT)

Trading in Lyft, Inc. LYFT is quiet Friday. But that may not be the case for long. There is a good chance the shares are about to head lower.

We have made Lyft our Stock of the Day. It may be breaking support. This is a bearish dynamic that could indicate the beginning of a new downtrend.

You can see on the chart that the shares have found support around $15.40. This level first became support in February 2024. It was also support in March and April 2024.

Then in February 2025, the level converted into resistance. This happened because of regretful buyers.

Many of the people who bought Lyft at the support regretted doing so when the stock dropped below it. Many decided to hold on to their losing positions. But they also decided that if they could ever exit at breakeven, they would.

As a result, when the shares rallied back to $15.40 in February 2025, they placed sell orders. The large amount of these orders formed resistance at the same price that had been support.

Now Lyft has found support at this level again. This is because of seller's remorse.

Many of the traders and investors who sold at the resistance regretted doing so when the resistance broke and the stock moved higher. Some of them decided that if they eventually could, they would buy their shares back at the same price they were sold for.

So now that the price has fallen back to this level, these remorseful sellers are placing buy orders. The large concentration of these orders formed support at the same price that had been resistance.

But this support may be about to break.

When support breaks, it means the investors and traders who created the support with their buy orders are gone. They either finished or canceled their orders.

This means if new sellers enter the market, they will need to be aggressive and undercut each other if they want to draw buyers back into the market. If this happens, it could force the price of Lyft lower.

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