What's Going On With Lordstown Motors Stock Today?

Lordstown Motors Corp. RIDE shares are trading higher Thursday after the company and Foxconn announced a definitive asset purchase agreement for the Lordstown Motors facility in Lordstown, Ohio. The company will sell the facility to Foxconn.

Lordstown Motors was up 15.49% at $6.42 midday Thursday. 

Lordstown Motors Daily Chart Analysis

• The stock pushed higher up to pattern resistance in what technical traders call a falling wedge pattern. The stock was unable to cross resistance and has dipped slightly lower since.
• The price has been pinched between highs and lows narrowing in a wedge formation and now are starting to near the end of the pattern. These highs and lows may stop holding as resistance and support if one of the levels is broken.
• The stock trades above the 50-day moving average (green) but below the 200-day moving average (blue), indicating the stock is likely facing a period of consolidation.
• The 50-day moving average may hold as an area of support, while the 200-day moving average may act as a place of resistance.
• The Relative Strength Index (RSI) has been pushing higher the past few days and now sits at 59. This shows the stock has been seeing more buyers than it has sellers and looks to be pushing toward the overbought area.

See Also: Why Lordstown Motors Stock Is Surging In After-Hours Trading

What’s Next For Lordstown Motors?

Bullish traders are looking to see the stock cross above the pattern resistance and be able to consolidate above the level. This could indicate that the stock is seeing a long term reversal and could be starting the beginning of an upward trend.

Bearish traders want to see the stock continue to be rejected by pattern resistance and begin to fall back toward support. Bears are then looking for a break below pattern support for a possible strong bearish push to follow.