Why did LCID stock rise 5% on Wednesday?
- Lucid Group stock continues its recent rally with a 5% rise on Wednesday.
- LCID shares are still aiming to return above $30.
- Lucid Group’s short interest continues to rise.
Shares of Lucid Group (LCID) trailed most growth stocks higher on Wednesday as an easing in bond yields led growth to outperform value. Shares had already rebounded just under 2% on Tuesday.
Lucid Group Stock News
Benzinga recently reported that Lucid’s short interest had risen to over 20% of its float. This corresponds to the decline in the share price, and we do not attach too much importance to it. That’s a relatively low number considering Lucid’s daily turnover and shouldn’t lead to a short squeeze in our opinion.
Lucid has struggled since the latest earnings report from Rivian (RIVN) showed shipments falling short of estimates. This has made investors wary of the high-growth EV space. The macro environment then changed completely with a hawkish Fed and sharply rising bond yields. This means that high growth stocks have struggled. Despite this, the stock remains frequently at the top of social media charts, and Benzinga notes that it was among the top ten searched tickers on his platform in January. Despite this momentum, stocks continue to fall. Momentum is key in growth stocks, and retail investors are fighting an uphill battle as the money quickly moves to other sectors.
Clear stock forecasts
The CPI print that just came out should refuel hawks and see global yields remain high after recent stabilizations. This will see growth stocks hit once more. Lucid will then remain under pressure in our opinion. The volume gap has worked well and $30 is resistance at the lower end of this volume gap. The 200-day moving average at $29.22 also shows the strong resistance in this area. The next target support is at $22.
Lucid, everyday chart
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