IDEX stock price is at major risk if this happens

IDEX stock price is approaching an important support level as electric vehicle (EV) selling continues. Shares of Ideanomics are trading at $0.84, a few points above the important support level at $0.8295, where it has struggled to descend several times this year. Additionally, the company’s market value shrank by more than $2 billion to just $439 million.

Liquidation of electric vehicle stocks

It’s been a tough time for electric vehicle stocks. For example, the Tesla stock price is in bearish territory as it has fallen more than 20% from its high this year. Other EV stocks were worse. For example, shares of Nio have fallen 70% from their all-time high. XPeng is down 64% from its all-time high, while Canoo is down more than 80%.

Ideanomics was not left out in this clearance sale. Investors are most concerned about several factors. First, margins are a concern as the cost of doing business rises. Some companies like Tesla and Rivian have already raised their prices because of these costs. Therefore, there are fears that these companies will experience slow growth due to rising costs. Already, electric vehicles are more expensive than combustion engine vehicles.

The IDEX share price also fell on growing fears that the company needs to raise short-term capital. However, as shown below, diluted shares outstanding have been on a strong upward trend for some time. This trend could continue now that the company needs cash to continue its investments. For example, it recently unveiled plans to unveil a giant experiment and manufacturing facility in New Jersey.

IDEX stock price forecast

We see that the IDEX stock price has seen a massive sell-off over the past few months on the daily chart. The shares are trading slightly above the important support level at $0.8100. It has failed to drop below that point many times this year. It is also slightly below the 25 and 50 day moving averages.

Therefore, the outlook for the Ideanomics share price is neutral. A drop below this support will signal that the bears have prevailed, leading to further selling. On the other hand, a jump above the resistance at $1.13 will invalidate the bearish view.


Karen J. Nelson