Why Lordstown Motors Might Be Breaking A Long-Term Downtrend

Lordstown Motors Corp RIDE shares are trading higher Thursday after the company appointed a new CEO, Daniel Ninivaggi. He is the former CEO of Icahn Enterprises LP IEP.

Lordstown Motors was up 21.27% at $6.68 at last check Thursday afternoon.

See Also: Lordstown Motors Stock Spikes On New CEO: What Investors Should Know

Lordstown Motors Daily Chart Analysis

• The stock looks to be breaking out of what technical traders call a falling wedge pattern. Possibly breaking a long-term downtrend.
• The stock bounced off of pattern support and started heading higher. Following the CEO announcement, the stock pushed much higher breaking pattern support. There is a possibility the stock may start an uptrend if it can begin to form higher lows.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating recent sentiment in the stock has been bearish.
• Each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) shot much higher after the announcement. The RSI rose and crossed above 50, sitting at 52. This means there is now more buying pressure in the stock than selling pressure.

What’s Next For Lordstown Motors?

Bullish traders want to see the stock form higher lows and begin to head higher, confirming a downtrend break. If the stock can form and hold above a higher low trendline, it may hint bulls have taken control of the stock.

Bearish traders would like to see the stock fall back to the wedge pattern and break below pattern support. This could cause the stock to see a further bearish push.

Photo: Lordstown Motors video screenshot