High volatility in Mullen Automotive stock price on Thursday which ended trading at $0.539

The Mullen Automotive stock price fell by -0.278% on the last day (Thursday, 27th Oct 2022) from $0.540 to $0.539. During the last trading day the stock fluctuated 12.75% from a day low at $0.522 to a day high of $0.588. The price has risen in 7 of the last 10 days and is up by 124.19% over the past 2 weeks. Volume fell on the last day along with the stock, which is actually a good sign as volume should follow the stock. On the last day, the trading volume fell by -7 million shares and in total, 268 million shares were bought and sold for approximately $144.12 million.

The stockhas broken the very wide and falling short-term trend up. Firstly a slower falling rate is indicated, but this may very well be an early signal of a trend shift. On the reaction, there will be support on the roof of the current trend broken, which is $0.530, a level that may pose a second chance to hit a runner. According to fan-theory $0.91 will be the next possible trend-top level and thereby pose a resistance level that may not be broken at the first attempt.

The Mullen Automotive stock holds buy signals from both short and long-term moving averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $0.450 and $0.386. A breakdown below any of these levels will issue sell signals. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Wednesday, October 26, 2022, and so far it has fallen -0.278%. Further fall is indicated until a new bottom pivot has been found. Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements.

On the downside, the stock finds support just below today's level from accumulated volume at $0.508 and $0.502.There is a natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Mullen Automotive finds support just below today's level at $0.508. If this is broken, then the next support from accumulated volume will be at $0.502 and $0.500.

This stock may move very much during the day (volatility) and with a very large prediction interval from the Bollinger Band this stock is considered to be "very high risk". During the last day, the stock moved $0.0665 between high and low, or 12.75%. For the last week, the stock has had daily average volatility of 20.54%.

The Mullen Automotive stock is extremely overbought on RSI14 (78). Normally this may pose a good selling opportunity but since the stock has broken the trend up, the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.

Several short-term signals are positive and the break-up from the falling trend indicates a possible shift for a trend. We believe that the prices around the breaking point will indicate particularly good levels, but we also believe that the current level will hold a possible good buy level for the short-term period.