Lucid Group’s (NASDAQ: LCID) stock price is recovering from a new low set in November, suggesting a bottom is in play. However, the company’s risks remain, and the downtrend is intact, so investors should be wary. The move back above $2.70 in mid-December is promising but has yet to cross the critical resistance point near $2.90. That level aligns with the bottom edge of the gap formed in October and the 150-day EMA, which may provide strong resistance to higher prices. The gap lower was caused by a new share offering. The company says the market misinterpreted the move, but it is hard to misinterpret dilutive actions from a company struggling to gain traction.
