• Lucid Group falls over 3% on Thursday as CPI spikes.
  • More losses are likely for growth stocks after more Fed hikes are priced in.
  • LCID fails to break the 200-day moving average.

Lucid Group (LCID) suffered on Thursday as growth stocks once again look to be on the back foot. This was not stock specific but rather a further reinforcement of the growth stock exodus this year. To recap, the CPI number on Thursday showed continued growth in US inflation. Even more worrying was the broadening of inflation out into practically every sector of the economy now. Core food prices are rising, and consumers have little way to avoid inflation now. Previous high reading were driven by energy and some large ticket items, such as used cars and big technology items, but inflation is spreading now. 

Lucid Group Stock News

This CPI reading yesterday immediately saw Fed funds futures price in an 80% chance of a 50bps rate hike by the Fed at its next meeting in March. This too had an immediate effect on tech and growth stocks, which were universally marked down. Lucid had no chance in this environment. All EV stocks suffered with only Rivian bucking the trend, but this too will likely soon follow the others lower. There was some hope on Thursday as the Biden administration announced a $5 billion, five-year program of investment in US EV charging infrastructure.

Lucid Group Stock Forecast

$30 remains resistance, and that is unlikely to be tested any time soon. There is small support at $26, but the real test is at $24. There is huge volume down here, which should at least slow things down. A break much lower, and $20 will be an obvious taget. $20 is also the last of the volume. Below there is a huge volume gap. That could make things get ugly. Below $30 Lucid is bearish in our view, and the 200-day at $29 is also adding to the importance of this resistance area. 

LCID 1-day chart

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This article was originally published by Fxstreet.com.Read the original article here.


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