What's Next For Lordstown Motors Stock After CEO And CFO Departures?

Lordstown Motors Corp. RIDE shares fell Monday after the company said CEO Steve Burns and CFO Julio Rodriguez resigned.

The resignations occurred just days after the electric vehicle maker warned it had “substantial doubt” about its ability to continue as a going concern in the next year.

Lordstown Motors was down 20.16% at $9.11 at last check. Below a breakdown of the stock's chart.

Lordstown Motors Daily Chart Analysis:

• Shares were climbing toward resistance in an ascending triangle pattern, but after Monday's news, the stock fell below the higher lows trendline.
• The stock crossed below the 50-day moving average (green) Monday, and trades below the 200-day moving average (blue), indicating sentiment in the stock is turning bearish.
• Each of these moving averages may hold as an area of resistance in the future.

Key Levels To Watch:

• Lordstown Motors looked to have broken below the higher low trendline and is possibly ready to see a further drop.
• The cross below support may hint that a trend change and possibly a strong drop are coming in the stock.
• For the stock to recover, it would need to cross back above the higher low trendline and then work its way up to the $13 resistance level.

What’s Next?

Bullish technical traders would like to see the stock cross back above the higher low trendline. If the stock can cross above the higher low trendline, then it may be able to eventually cross the $13 resistance.

Bearish technical traders would like to see the stock continue to trade below the higher low trendline and the moving averages. If the stock can stay below the trendline and these indicators, then it's likely the trend is changing and the stock may be ready to move lower.