Three-wheel electric vehicle (EV) Arcimoto (NASDAQ:FUV) was highlighted in an article “Arcimoto Stock is Worthy at These Levels” on Jan. 13, 2021. Shares have nearly doubled since then prompting the consideration to ring the register taking some or all profits while the market continues to price in the EV and clean energy narrative premium.
As U.S. EV makers get closer to production, markets will move to actual EV delivery metrics. Arcimoto is nearing production ramps on their unique line of three-wheel EVs tailored to the first responders, recreational, and delivery services segments. Prudent investors who took positions earlier in the year might want to lock some profits into opportunistic exit price levels before a larger channel tightening reversion kicks in.
Updates and Events
On Jan. 25, 2021, Arcimoto announced the acquisition of Tilting Motor Works, creator of the TRiO, three-wheel conversion kit for touring motorcycles. Most notably, the patented tilting trike technology will be integrated into Acrimoto products. This news triggered the range breakout spiking shares into the mid-$20s, which would continue to squeeze for the next several weeks to peak at $36.80 on Feb. 5, 2021. The sentiment driving up U.S. EV makers was also key momentum factor as Workhorse (NASDAQ:WKHS), Lordstown Motors (NASDAQ:RIDE) and Canoo (NASDAQ:GOEV) share similar price spikes.
Catalysts
Investors are waiting for updates on the pilot program with the City of Orlando for first responder EVs. The Company had originally forecast the production of four EVs per day by the end of Q1 2021 and the ultimate goal of up to 50,000 EVs within 24 hours. Since the last article, the Company had received 4,000 deposits. Any updates on the Orlando project notably orders, rise in paid deposits and ramp up of EV deliveries are the key catalysts that can spike share prices. Investors may consider these spikes to sell-the-news before the market does into opportunistic exit price levels.
FUV Opportunistic Exit Levels
Using the rifle charts on the weekly and daily time frames provides a precise near-term perspective of the price action playing field for FUV stock. The weekly rifle chart formed a pup breakout after triggering the daily market structure low (MSL) buy trigger above $13.75 at the beginning of 2021. The weekly 5-period moving average (MA) is rising at $23.62 while shares overshot the weekly upper Bollinger Bands (BBs) at $32.65.
The daily rifle chart formed two pup breakouts to trigger a squeeze up to $36.80 before peaking to form a market structure high (MSH) sell trigger below $30.05 and a weekly MSH trigger below $27.22. The weekly mini pup can’t formed until the weekly 5-period MA is tested and bounces. The daily channel tightening completed by testing the daily 15-period MA at the $27.15 Fibonacci (fib) level.
The daily has a make or break that is anchored by the daily stochastic and daily 5-period MA falling at $30.06. A coil back to the daily 5-period MA provides opportunities to trim some profits before the daily MSH triggers under $27.22, which can lean price down towards the weekly 5-period MA at the $23.22. Prudent investors can use opportunistic exit price levels to ring the register on part of all of the position from the $25.34 fib up to the $39.54 fib with a trail stop under $21.92.
Obviously, one would prefer to trim shares are the higher fibs, but that’s only possible if the daily stochastic crosses back up as shares rise through the daily 5-period MA long enough to enable the weekly mini pup to materialize. Shares may not test the upper exit fib ranges so it’s best to be aware of the price inflection points to consider trimming.