Canoo (GOEV) Stock Price and Forecast: Why is Canoo stock dropping?
- Canoo and Sono both see huge interest from retail traders.
- The EV sector is surging right now.
- Investors look to jump on board the Rivian train.
Canoo Group (GOEV) and Sono Group (SEV) are both surging in terms of interest and stock price performance as the electric vehicle (EV) space could not be much hotter right now. The successful launch of Rivian (RIVN) last week (which has since seen its stock price more than double) has led investors and retail traders to look for the next hot EV company.
Rivian is currently the third-largest automaker in the world now by market cap, so valuations may have gotten ahead of themselves, but momentum is what is at play here. Just please be careful. As Jim Cramer said last night, "Remember, you’re playing momentum, not car companies and not technology, and in that case it’s better to ring the register early and often.” So take your profits when you can and manage your risk accordingly.
Canoo (GOEV) stock news
GOEV shares have been here before, the stock surged late last year on some hype before sliding back down so it is still some way off those highs of $24.90. The stock took off earlier this week with a gain of nearly 24% on Tuesday and followed that up with another 3% on Thursday. Canoo said it was bringing forward its expected production schedule from 2023 to before the fourth quarter of next year.
Canoo also said it was relocating its headquarters to Walmart's (WMT) hometown of Bentonville, Arkansas, which was enough to see social media light up with rumours of a deal between Canoo and Walmart. However, there is no news to report on this front. It is pure speculation. Canoo is a very early stage development, so caution is warranted. The company has nearly no revenue as of yet, so this one is purely for speculation.
Canoo (GOEV) stock forecast
The move this week has broken the 200-day moving average as well as the yearly Volume-Weighted Average Price (VWAP). This is a strong statement, so some consolidation may be needed. Volume is now light until $15. With such a sharp move in such a volatile stock, a pullback would not be all that surprising, but so long as the breakout point is held then it can still be said to be bullish. $9.40 is the breakout point, and holding above that is key. Momentum is fading as the stock is down at $10.33 or 4.3% lower on Thursday.
GOEV 1-day chart
Premium
You have reached your limit of 3 free articles for this month.
Start your subscription and get access to all our original articles.
Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
