Why Lucid Group Stock Looks Like It's Starting To Heat Up

Lucid Group Inc. LCID shares are trading higher after the company's Lucid Air Dream Edition Range received an official EPA rating of 520 miles of range. It's the longest range of an electric vehicle yet, beating the Tesla Model S by 115 miles.

The stock gained 6.33% Thursday, closing at $21.17. 

Lucid Group Daily Chart Analysis

• Shares look to have bounced off of pattern support and started heading higher toward resistance in what technical traders call a sideways channel.
• The $30 level is an area where the stock has struggled to cross above and it has held as resistance in the past. The price recently saw a bounce near the $17 level, a place where the stock has been able to find support before.
• 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) looks to have bounced off the oversold border and now sits at 51 on the indicator. This shows that in the last few days there has been an increase in the amount of buying pressure in the stock.

See Also: Why This Lucid Group Analyst Says It's Among 'Most Legitimate' EV Startups

What’s Next For Lucid Group?

Bullish traders would like to see the stock start forming higher lows after bouncing off of the trendline. Bulls are then looking for the stock to break above the resistance and continue its upward trend.

Bears are looking to see the stock be unable to form higher lows and for the stock to start falling back toward support. Bears are then looking to see the stock fall below support and begin to hold it as a resistance level.