Shares of Lucid Group, Inc. (NASDAQ: LCID) slammed into a wall of resistance and are moving lower, down 16% at press time. The company reported worse-than-expected fourth-quarter sales results and cut 2022 production guidance.
Resistance is a large group of investors offering or trying to sell shares close to the same price. In this case, it's $29.00.
At resistance levels, there is more supply than demand. That’s why rallies end when they reach them.
Sometimes stocks move lower after hitting resistance. This happens when some sellers become more aggressive. They reduce the price they're willing to sell at.
This causes other sellers to do the same, and it could form a new downtrend. That may be the case with Lucid Motors.
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