Why Lucid Motor's Price Is Set To Further Accelerate

Lucid Motors ($CCIV) has had a meteoric rise the last few months with its highly-anticipated SPAC announcement. The stock went parabolic and then came crashing down. I believe this has resulted in an amazing buying opportunity. 

It was roughly two weeks ago I alerted about an impending profitable bounce in Lucid Motors. In this post, I drew a rectangle and talked about how it and the 50 SMA will act as support.  Since then Lucid Motors has bounced 33% off its lows and the rectangle I drew well in advance has been spot on along with the 50 SMA. As it stands it has been a great call so far. 

Additionally, I talked about two scenarios in play on how Lucid Motor's bounce will play out (which seems like it will be Scenario 2). You can check out the updated version of that chart below.

As long as there are no bearish surprises or dastardly market behavior I believe Lucid Motors bounce is set to continue and accelerate at a faster pace than what has transpired so far. This will occur once we see a 5 and 10 EMA crossover.

In the chart below, during Lucid Motor's ($CCIV) bullish period the 10 EMA provided support as the price would bounce off of it. But now it’s been acting as resistance. However, this is a perfectly natural behavior and Lucid Motors ($CCIV) will eventually break out. Once that happens successfully the energy released will propel Lucid Motors much higher.

Looking at the chart below, you can see how I drew some price targets, as well as analyzed the 5 and 10 EMA.

I believe relatively soon as price attempts to break the 10 EMA, and a 5 and 10 EMA crossover occurs, the energy expended in doing so will propel the stock higher and the bounce will continue to accelerate.

I believe the first price target will be around $35. Then the next major target would be the gap to fill around $50 which may take a bit longer to get there.

You can see in the example below with Virgin Galatic ($SPCE) when the 5 EMA and 10 EMA had a bullish cross over, the stock accelerated upward rather quickly. Just a warning though, I wouldn't solely trade on the 5/10 EMA cross-over as making a consistent profit requires much more than just this signal.

For now, everything is going as expected with Lucid Motors as it’s just having a parabolic hangover. Just remember to be cautious and sometimes there are factors outside my control that could ruin this call. Just always remember risk management.

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