Is Lucid (LCID) Worth a Short-Term Trade Before Earnings?

Lucid Motors (LCID) is setting up for an interesting move possibly before earnings

Technical Setup – Signs of a Potential Breakout

On the weekly chart, LCID looks like it's trying to break out of a downtrend, with the 20-SMA and 50-SMA starting to turn upward.

On the daily chart, price action is bouncing off support ($2.90 - $3.00) and attempting to push past resistance at $3.10 - $3.20.

Volume has been increasing, which could signal accumulation before a bigger move.

Fundamentals –

➡️ Takeaway: Revenue is improving, but the company needs to show stronger growth momentum to justify its valuation.

Profitability – Still Deep in the Red
Q1 2024 loss: -680.86M (worsening)
Q2 2024 loss: -643.39M (slight improvement)
Q3 2024 loss: -992.48M (huge drop)
TTM net loss: -2.97B

➡️ Takeaway: Lucid is still bleeding cash, and the key earnings catalyst is whether they show improved cost control or better gross margins.

3️⃣ Trading Plan – Earnings Risk & Strategy

✅ Safe Play: Wait for earnings reaction. Buy only if LCID breaks $3.20+ with strong guidance.

⚠️ Risky Play: Buy before earnings ($3.00 - $3.10) but set a strict stop-loss at $2.70 to manage downside.

🚀 Earnings Upside? If losses narrow or revenue surprises, expect a breakout toward $3.80 - $4.00.

🔻 Earnings Downside? Weak guidance or more dilution could send it below $2.70.

Final Take
Lucid is showing signs of life, but it’s still a high-risk trade. If you’re looking for a speculative move, it could be worth a shot, but just be ready for volatility next week. 🚀⚠️