Trader Robot's Success Story: +5.78% Gain on $LCID
The "Swing trader: Deep Trend Analysis v.2 (TA)," recently made headlines with its impressive performance, achieving a remarkable +5.78% gain while trading LCID over the course of the previous week. In this article, we delve into the bot's performance, dissect the latest market indicators, and explore the broader context of the Motor Vehicles Industry.
Momentum Indicator for LCID Signals a Downward Trend
One of the key indicators pointing towards the market's volatility is the Momentum Indicator for LCID, which recently dipped below the crucial 0 level on September 7, 2023. This movement signals a potential shift in the stock's direction towards a new downward trend. For traders, this development presents a critical decision point: whether to consider selling the stock or exploring put options.
To provide context, we turn to Tickeron's A.I.dvisor, which analyzed 48 similar instances where the Momentum Indicator turned negative. In a staggering 45 out of these 48 cases, the stock continued to decline in the days that followed. This statistical insight highlights the potential bearish trajectory of LCID, with odds of a decline estimated at a significant 90%.
Earnings Report and Market Capitalization
Zooming in on LCID's fundamentals, we find that the company's last earnings report, released on August 7, 2023, showed earnings per share of -40 cents. This figure missed the estimate of -34 cents, which can have a profound impact on investor sentiment. LCID currently boasts 25.23 million shares outstanding, resulting in a market capitalization of 14.38 billion dollars.
To put this into perspective, we can compare LCID's market capitalization to the average across the Motor Vehicles Industry, which stands at 34.42 billion dollars. This data underscores the dynamic nature of the industry, with market caps ranging from 2.49 million dollars (EVTGF) to a staggering 799.59 billion dollars (TSLA). TSLA's valuation dominance in the industry demonstrates the considerable variance in market capitalization among companies in this sector.
High and Low Price Movements in the Industry
In terms of price movements, it's essential to gauge the volatility of the Motor Vehicles Industry. The average weekly price growth across all stocks in this sector was -3%, indicating a general trend of price depreciation. Over a longer period, the average monthly price growth remained negative at -7%, further emphasizing the bearish sentiment.
Within this context, individual companies experienced varying degrees of price fluctuations. SEAN emerged as an outlier with a 50% price growth, while FFIE suffered the most significant fall, plummeting by -48%. These sharp fluctuations are indicative of the turbulence that traders and investors must navigate within the Motor Vehicles Industry.
Volume Trends in the Motor Vehicles Industry
Lastly, let's examine the volume trends in the Motor Vehicles Industry. The average weekly volume growth across all stocks in this sector was -20%, highlighting a decrease in trading activity. This trend was consistent over both monthly and quarterly periods, with average volume growth rates of -21% and -20%, respectively.
These volume statistics indicate a declining interest in Motor Vehicles Industry stocks among traders and investors. It's essential to consider how reduced trading activity might impact price movements and overall market dynamics.
In summary, the performance of the "Swing trader: Deep Trend Analysis v.2 (TA)" bot provides a fascinating case study of AI-powered trading in a volatile market. The negative Momentum Indicator for LCID and the missed earnings estimate underscore the challenges and opportunities presented in the Motor Vehicles Industry. As market conditions evolve, it is essential for traders and investors to remain vigilant and adapt their strategies accordingly, especially in an industry as dynamic as Motor Vehicles.
Aroon Indicator for LCID shows an upward move is likely
LCID's Aroon Indicator triggered a bullish signal on December 24, 2024. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 110 similar instances where the Aroon Indicator showed a similar pattern. In of the 110 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on December 04, 2024. You may want to consider a long position or call options on LCID as a result. In of 73 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
LCID moved above its 50-day moving average on December 12, 2024 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for LCID crossed bullishly above the 50-day moving average on December 18, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 10 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LCID advanced for three days, in of 210 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 6 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LCID declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
LCID broke above its upper Bollinger Band on December 20, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. LCID’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.355) is normal, around the industry mean (6.142). P/E Ratio (10.309) is within average values for comparable stocks, (18.218). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (5.723). LCID has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.042). P/S Ratio (10.000) is also within normal values, averaging (78.580).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. LCID’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock worse than average.
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Industry MotorVehicles