- IDEX is up 36% in 2021, is it fully charged?
- IDEX operates in the hot electric vehicle sector.
- The company stock is extremely volatile, with multiple news catalysts of late.
Ideanomics (IDEX) offers solutions for fleet management of electric vehicles (EV), financing solutions for and monetizing the adoption of EV and its associated technology. IDEX also has a mobile energy division which runs battery buyback programs for EV’s. The stock closed at $2.71 on Wednesday and is up 36% so far this year.
IDEX stock news: The sector is hot, hot, hot
It is no surprise that IDEX has been having a stellar start to 2021 as it operates in a sector that is quite topical right now. Traders love TESLA and NIO, and IDEX has benefited accordingly. On Friday, Ideanomics CEO Alf Poor said that while Tesla was set to be the Apple of electric vehicles, IDEX was set to be the Android.
IDEX also has plans to roll out electric vehicles via its Medici unit in the US, Canada and China in 2021 with plans for electric delivery vans, motorbikes buses and trucks. These are ambitious plans.
IDEX growth might be too fast, too furious
IDEX has been trying to expand its business and product offering. It took a stake in Soletrac, an electric tractor maker, and it also purchased Timios Holdings, a real estate title provider. But all this expansion has come at a cost to the bottom line. From 2018 to 2019, the gross profit of IDEX jumped from 2.8M to 40.8M but over the same period in 2020, this has dropped to a small loss. The CEO of IDEX recently exercised 250,000 options at an average of $0.27c per share.
IDEX technical analysis
IDEX is highly volatile, with day traders jumping in and out quickly on the back of any news. It shows huge swings on large volumes. Its current uptrend is still in place with key support at $2.64, the 61.8% Fibonacci retracement of the recent spike, and then at $1.67. Breaking below $2 would put the uptrend in question while falling below and breaking $1.67 would end to the bullish trend.
I have no position in IDEX and no business relationship with the company. I have received compensation for writing this article.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD holds steady near 0.6250 ahead of RBA Minutes
The AUD/USD pair trades on a flat note around 0.6250 during the early Asian session on Monday. Traders brace for the Reserve Bank of Australia Minutes released on Tuesday for some insight into the interest rate outlook.
USD/JPY consolidates around 156.50 area; bullish bias remains
USD/JPY holds steady around the mid-156.00s at the start of a new week and for now, seems to have stalled a modest pullback from the 158.00 neighborhood, or over a five-month top touched on Friday. Doubts over when the BoJ could hike rates again and a positive risk tone undermine the safe-haven JPY.
Gold price bulls seem non-committed around $2,620 amid mixed cues
Gold price struggles to capitalize on last week's goodish bounce from a one-month low and oscillates in a range during the Asian session on Monday. Geopolitical risks and trade war fears support the safe-haven XAU/USD. Meanwhile, the Fed's hawkish shift acts as a tailwind for the elevated US bond yields and a bullish USD, capping the non-yielding yellow metal.
Week ahead: No festive cheer for the markets after hawkish Fed
US and Japanese data in focus as markets wind down for Christmas. Gold and stocks bruised by Fed, but can the US dollar extend its gains? Risk of volatility amid thin trading and Treasury auctions.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.