Mullen Automotive (NASDAQ:MULN) stock has plunged all throughout February after it had risen and then consolidated during the month of January.
The automotive stock started the year around $0.32 per share and rose above $0.44 before retesting it three times and coming back down.
Analyst predictions have triggered heavy buying pressure from retail investors.
Despite massive waves of retail coming in, shareholders suspect naked shorting in MULN is to blame for the declining share price.
Shares rose from $0.21 to $0.24 on Tuesday, up more than 7% intraday.
Still, volume has proven many times over to move share prices back up.
In late January, MULN stock surged more than 18% when volume surged to 382 million, up 165 million from its average during that month.
Will MULN stock go back up soon?
Let’s discuss what’s happening.
Latest MULN Stock News 2023
Despite Mullen Automotive’s share price plunging in the past month, the company has gone through a series of very positive news.
- Ault Alliance recently become the largest shareholder.
- Newgate Motor Group confirmed the delivery of new I-GO EVs.
- Mullen Automotive has supplied Menzies Aviation with Cargo Van EVs.
- Mullen Automotive received a $200 million purchase order for 6,000 Evs.
The latest MULN stock news this year are bullish enough to send shares up to space.
Buyers are there, which is why shareholders are suspecting Mullen Automotive has become a target to naked short selling.
A predatorial practice in the market used to short the stock without any real shares.
Will MULN Stock Go Up Soon?
Mullen Automotive stock has formed a bull flag intraday — an indication that the stock is ready to make moves upwards.
We can see that bullish sentiment pushed the stock upwards from its previous close and has begun to consolidate.
Big buying pressure may result in higher moves for Mullen Automotive stock in the short term.
However, if short sellers are able to flood the market with more sell orders than buy orders, expect a fake-out and for shares to retest lower.
In terms of the macro picture, technical analysis shows us MULN stock is in a downtrend channel but has broken the channel today in an upwards attempt to reverse.
If retail investors are unable to build strong enough buying momentum to send shares up, we can expect Mullen shares to continue its macro downtrend.
A falling wedge tends to eventually break upwards (patterns based on historic sentiment), so it’s very possible we see a bounce back up and a new trend begin to form, too.
It’s important to know that both the options volume and institutional/retail sentiment remain bullish.
But I’m curious to know your thoughts on where Mullen Automotive is headed.
Leave your thoughts in the comment section down below.
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