EV maker Lucid’s shares cut in half amid reports of possible bankruptcy
Amid reports of potential bankruptcy, Lucid's stock price has halved.
The stock is currently in an unstable phase, experiencing significant fluctuations due to reports of potential bankruptcy. While there is a possibility of a rebound around the support level of 2.80, it may be worth considering buying at lower prices. However, a cautious approach is necessary as a bearish trend is expected until the resistance level of 3.50 is breached.
We aim to rebound based on the support level of 2.80, but if there is further decline and 2.50 breaks, we will cut losses. Conversely, even if there is an upward movement, the bearish trend will continue until the resistance level of 3.50 is surpassed, so we will consider taking profits around the 3.50 area.
Despite anticipating a conservative approach based on overlapping negative factors such as bankruptcy risk reports and offering announcements, the actual outcome significantly exceeded the predicted return of -12.0%, recording an increase of 106.5% and receiving an OVERHIT designation. While leaving open the possibility of a rebound near support levels during a downturn, the overly cautious stance, driven by short-term bearish trends and risk aversion, failed to adequately reflect major positive developments or a reversal in supply and demand dynamics.
In a phase where negative factors and disclosure risks are highlighted, we will precisely separate the excessive declines caused by large-scale offerings or bankruptcy rumors followed by the announcement of new models, as well as the excessive fear in the market, and reflect this in our trading strategy.