Lucid Group (LCID) has experienced a steep decline since its historic peak on 15th November 2021, when it reached approximately $57 per share. The downtrend, spanning over two years, is best interpreted as a classic ABC corrective structure based on Elliott Wave Theory. However, recent technical signals suggest this prolonged bearish phase may have concluded with the low of $1.93.
Elliott Wave Analysis of Lucid Group
The ABC correction highlights a significant retracement, with the C-wave marking the final stage of this bearish structure. The $1.93 low could represent the termination of Wave C, potentially setting the stage for a robust recovery. If this analysis holds, Lucid Group could be poised for a sharp reversal, with an initial target of $13 and a long-term potential to reclaim $60.
Fibonacci and Confluence Zones
From a technical perspective, the $1.93 level aligns with key Fibonacci extensions, reinforcing its validity as a critical support. This confluence supports the idea that the correction is complete, paving the way for an impulsive upward move.
Fundamental Outlook
While the technical setup is promising, Lucid’s fundamentals will also play a crucial role in its recovery. As a leading electric vehicle (EV) manufacturer, Lucid is well-positioned in a burgeoning market. Its innovative designs and expanding global footprint make it a company to watch as the EV sector continues to grow.
Risk Management and Key Levels
Despite the bullish outlook, risk management remains vital. If the $1.93 level is breached, it would invalidate this scenario, signalling further downside risk. For now, this serves as the critical stop-loss level for any bullish positions.
Final Thoughts
Lucid Group is at a critical juncture. After a prolonged corrective phase, the stock appears ready to rebound, with technical indicators pointing to significant upside potential. Targets of $13 in the short term and $60 in the long term provide compelling opportunities for investors.
For traders looking to capitalise on Lucid’s recovery, close attention to key support and resistance levels will be essential. The EV giant may just be gearing up for an electrifying comeback.
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