Volatile ride for Mullen Automotive stock price on Wednesday moving between $1.51 and $1.71

The Mullen Automotive stock price gained 5.26% on the last trading day (Wednesday, 22nd Jun 2022), rising from $1.52 to $1.60. , and has now gained 7 days in a row. It is not often that stocks manage to gain so many days in a row, and falls for a day or two should be expected. During the day the stock fluctuated 13.25% from a day low at $1.51 to a day high of $1.71. The price has risen in 6 of the last 10 days and is up by 19.4% over the past 2 weeks. Volume fell on the last day by -9 million shares and in total, 93 million shares were bought and sold for approximately $148.55 million. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.

Given the current short-term trend, the stock is expected to fall -52.40% during the next 3 months and, with a 90% probability hold a price between $0.0021 and $0.76 at the end of this 3-month period. Do note, that if the stock price manages to stay at current levels or higher, our prediction target will start to change positively over the next few days as the conditions for the current predictions will be broken.

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 $1.28 and $1.17. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Wednesday, May 11, 2022, and so far it has risen 100.05%. Further rise is indicated until a new top pivot has been found. Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely. Some negative signals were issued as well, and these may have some influence on the near short-term development. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD).

On the downside, the stock finds support just below today's level from accumulated volume at $1.42 and $1.40.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 finds support just below today's level at $1.42. If this is broken, then the next support from accumulated volume will be at $1.40 and $1.29.

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 $0.20 between high and low, or 13.25%. For the last week, the stock has had a daily average volatility of 14.10%.

Since the Mullen Automotive has been rising for 7 days in a row, the risk over the next couple of days has increased. We don't expect a major reaction as the stock is in very good shape technically, and therefore hold a positive evaluation despite the very short term risk.

Mullen Automotive holds several positive signals and despite the stock being in a falling trend, we considered it to be a good choice at these current levels. We expect Mullen Automotive stock will perform very well in the next 3 months. We have upgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Strong Buy candidate.