Is Lucid Stock Setting Up For A Breakout Ahead Of Deliveries?

Lucid Group Inc (NASDAQ: LCID) announced Tuesday that it expects to begin delivering vehicles to reservation holders by the end of October. The company noted it has received more than 13,000 reservations for the Lucid Air model.

The delivery announcement gives Lucid an advantage over the other EV companies besides Tesla Inc (NASDAQ: TSLA), Miller Tabak's Matt Maley said Wednesday on CNBC's "The Exchange."

The stock surged higher in the beginning of the year as investors anticipated its SPAC merger, but after the announcement, the stock fell and has since been stuck in a sideways trading range, he told CNBC. 

"Now we're bumping up against the top end of that range and if it can break out from there, that's going to attract a lot of momentum money into this stock," Maley said. 

When a stock consolidates for a lengthy period of time it tends to break out of the trading range with some momentum, he said, adding that the breakout can be to the upside or the downside. 

In the case of Lucid stock, it's testing the upper end of the range and "if it breaks out, it's going to run," Maley emphasized. 

Related Link: Lucid Group Is Outpacing EV Stocks Today: What's Next?

LCID Price Action: Lucid was up 7.09% at $26.28 Wednesday at market close.

Photo: Courtesy of Lucid.