Lucid Motors (LCID) is setting up for an interesting move possibly before earnings
Technical Setup – Signs of a Potential Breakout
On the weekly chart, LCID looks like it's trying to break out of a downtrend, with the 20-SMA and 50-SMA starting to turn upward.
On the daily chart, price action is bouncing off support ($2.90 - $3.00) and attempting to push past resistance at $3.10 - $3.20.
Volume has been increasing, which could signal accumulation before a bigger move.
Fundamentals –
➡️ Takeaway: Revenue is improving, but the company needs to show stronger growth momentum to justify its valuation.
Profitability – Still Deep in the Red
Q1 2024 loss: -680.86M (worsening)
Q2 2024 loss: -643.39M (slight improvement)
Q3 2024 loss: -992.48M (huge drop)
TTM net loss: -2.97B
➡️ Takeaway: Lucid is still bleeding cash, and the key earnings catalyst is whether they show improved cost control or better gross margins.
3️⃣ Trading Plan – Earnings Risk & Strategy
✅ Safe Play: Wait for earnings reaction. Buy only if LCID breaks $3.20+ with strong guidance.
⚠️ Risky Play: Buy before earnings ($3.00 - $3.10) but set a strict stop-loss at $2.70 to manage downside.
🚀 Earnings Upside? If losses narrow or revenue surprises, expect a breakout toward $3.80 - $4.00.
🔻 Earnings Downside? Weak guidance or more dilution could send it below $2.70.
Final Take
Lucid is showing signs of life, but it’s still a high-risk trade. If you’re looking for a speculative move, it could be worth a shot, but just be ready for volatility next week. 🚀⚠️
Technical Setup – Signs of a Potential Breakout
On the weekly chart, LCID looks like it's trying to break out of a downtrend, with the 20-SMA and 50-SMA starting to turn upward.
On the daily chart, price action is bouncing off support ($2.90 - $3.00) and attempting to push past resistance at $3.10 - $3.20.
Volume has been increasing, which could signal accumulation before a bigger move.
Fundamentals –
➡️ Takeaway: Revenue is improving, but the company needs to show stronger growth momentum to justify its valuation.
Profitability – Still Deep in the Red
Q1 2024 loss: -680.86M (worsening)
Q2 2024 loss: -643.39M (slight improvement)
Q3 2024 loss: -992.48M (huge drop)
TTM net loss: -2.97B
➡️ Takeaway: Lucid is still bleeding cash, and the key earnings catalyst is whether they show improved cost control or better gross margins.
3️⃣ Trading Plan – Earnings Risk & Strategy
✅ Safe Play: Wait for earnings reaction. Buy only if LCID breaks $3.20+ with strong guidance.
⚠️ Risky Play: Buy before earnings ($3.00 - $3.10) but set a strict stop-loss at $2.70 to manage downside.
🚀 Earnings Upside? If losses narrow or revenue surprises, expect a breakout toward $3.80 - $4.00.
🔻 Earnings Downside? Weak guidance or more dilution could send it below $2.70.
Final Take
Lucid is showing signs of life, but it’s still a high-risk trade. If you’re looking for a speculative move, it could be worth a shot, but just be ready for volatility next week. 🚀⚠️
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.