Is Mullen Automotive, Inc. stock still a buy after falling -7.90% on Tuesday ?

The Mullen Automotive, Inc. stock price fell by -7.90% on the last day (Tuesday, 19th Apr 2022) from $1.84 to $1.69. and has now fallen 6 days in a row. During the day the stock fluctuated 7.74% from a day low at $1.68 to a day high of $1.81. The price has fallen in 8 of the last 10 days and is down by -40.91% for this period. 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 -52 million shares and in total, 70 million shares were bought and sold for approximately $118.38 million.

The stock is moving within a very wide and horizontal trend and further movements within this trend can be expected. Given the current horizontal trend, you can expect Mullen Automotive, Inc. stock with a 90% probability to be traded between $0.57 and $3.25 at the end of this 3-month period. A break of a horizontal trend is often followed by a large increase in the volume, and stocks seldom manage to go directly from the bottom of a trend up to the top. Stocks turning up in the middle of a horizontal trend are therefore considered to be potential runners.

There are few to no technical positive signals at the moment. The Mullen Automotive, Inc. stock holds sell signals from both short and long-term moving averages giving a more negative forecast for the stock. On corrections up, there will be some resistance from the lines at $2.24 and $2.14. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Tuesday, March 22, 2022, and so far it has fallen -48.94%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). 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 $1.60 and $1.35.There is 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, Inc. finds support just below today's level at $1.60. If this is broken, then the next support from accumulated volume will be at $1.35 and $1.34.

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 $0.13 between high and low, or 7.74%. For the last week, the stock has had a daily average volatility of 11.93%.

Mullen Automotive, Inc. holds several negative signals and is within a very wide and falling trend, so we believe it will still perform weakly in the next couple of days or weeks. We therefore hold a negative evaluation of this stock.