lucid group inc lcid popped over 6 higher at one point monday before running into a group of sellers who knocked the stock down about 4 from the highofday ahead of consumer price index data set to be released wednesday since june 23 lucid has surged about 40 trading in an uptrend pattern between two parallel trend lines which has caused an ascending channel pattern to develop the pattern is bullish in the short term but can be bearish down the road for bullish traders the trend is your friend until its not and the stock is likely to continue upward aggressive traders may decide to buy the stock at the lower trendline and exit the trade at the upper trendline bearish traders will want to watch for a breakdown from the lower ascending trendline on high volume for an entry when a stock breaks down from an ascending channel its a powerful reversal signal and indicates a steep downtrend may be in the cards want direct analysis find me in the bz pro lounge click here for a free trial the lucid chart on monday lucid almost hit the top rising trend line of the channel pattern where the stock rejected lucid then fell to test the lower ascending trend line of the channel and bounced up from the area   if lucid closes the trading session near to where the stock opened the day a doji candlestick will form which could indicate the local top has occurred and lucid will retrace on tuesday if lucid closes the session near its highofday the stock will form a hanging man candlestick which could also indicate lower prices are on the horizon   if lower prices come on tuesday bullish traders want to see the stock continue to hold above the lower trend line of the channel if higher prices come bullish traders want to see the stock break up from the pattern   bearish traders want to see lucid break down from the channel on higherthanaverage volume which could indicate a longerterm downturn is in the cards   lucid has resistance above at 835 and 984 and support below at 733 and 617 read next tesla loses charge negates former pattern why a downturn could be positive going forward