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Mullen Automotive, Inc. Closes 2023 with Volatility and Mixed Signals

StockInvest.us, 2 months ago

Mullen Automotive Technical Analysis

Mullen Automotive, Inc. (NASDAQ: MULN), a player in the electric vehicle (EV) industry, closed the trading session on December 29, 2023, at $14.29 with a slight increase of $0.17, or 1.20%. During the session, the stock experienced volatility with a low of $13.79 and a high of $17.99. MULN's 50-day moving average stands at $19.47, while the much higher 200-day moving average is at $574.16, indicating a significant downward trend over a longer period.

The wide variance between the 50-day and 200-day moving averages could be partly attributed to a stock split or similar corporate activity. Using the provided Average True Range (ATR) of $22.50, volatility over recent days has been high, hinting at a potentially more speculative investment environment. The stock has an RSI14 of 49, signifying a neutral momentum and providing no clear indication of overbought or oversold conditions. With a MACD of -2.43, the technical signal might hint at a bearish trend; however, positive news flow might negate this signal. Support is at $14.25, slightly below the last close, with an overhead resistance at $15.00, which the stock may test in the upcoming sessions.

Fundamental Analysis

Fundamentally, MULN presents a perplexing picture. The EPS (Earnings Per Share) is listed as -$31,907.84, and the PE (Price-to-Earnings) ratio stands at 0, which may reflect a recent adjustment to the company's share structure, potentially through a reverse stock split. The market capitalization is $59.03 million, the volume is approximately 4.77 million, and shares outstanding are 4.13 million. With average volume closer to 1.20 million, the observed trading volume is significantly higher than usual, which is likely correlated with the recent positive news.

The recent news cycle has been favorable for MULN. The delivery of 50 all-electric Mullen One vehicles to Randy Marion Automotive Group (RMA) and the anticipation of additional deliveries totaling 285 vehicles within the subsequent five business days is a strong positive catalyst. Moreover, Mullen's initiative to commence road testing its solid-state battery packs may appeal to future-focused investors, reflecting progress in product development despite volatile stock movements.

Mullen Automotive Short-Term Forecast

Predicting the performance for the next trading day and the upcoming week, one can reasonably assume that the momentum generated by the confidence-inspiring deliveries and technological advancements may carry forward. However, the extent of this momentum could be moderated by recent high volatility.

On January 02, 2024, the next trading day after the weekend, the stock could experience an initial spike owing to positive sentiment, but traders should remain cautious given the stock's recent erratic nature. For the upcoming week, investors will likely keep an eye on the delivery numbers and may react to any company announcements or broader EV market movements.

Overall Evaluation

Taking into account the technical indicators, recent fundamental developments, and the encouraging news, the evaluation of MULN would be a 'Hold.' The recent positive developments surrounding deliveries and battery testing are noteworthy, yet the technical analysis suggests caution due to significant past volatility and a current neutral-bearish signal from the MACD.

Investors might consider maintaining their position to see if the positive business developments can translate into sustained stock performance improvement. However, the extreme volatility and unprofitable financial metrics make it difficult to rate MULN as a 'Buy.' A more detailed analysis of the company's financials, management, and industry position may be advisable before making long-term investment decisions. It is also important to wait and watch the reaction to the upcoming earnings announcement on January 11, 2024, which could provide further insight into the company's financial health and future prospects.

Check full Mullen Automotive forecast and analysis here.