After forming a local bottom around $4.11, MULN stock has suddenly exploded. The stock of Mullen Automotive, Inc. surged above $5.20 as the markets opened on Friday. This is the highest level for the stock in the last two weeks and comes after a brutal sell-off that plunged the price to its all-time lows.
Despite a strong bounce, Mullen shares remain 27% down on the monthly timeframe. The shares of the troubled EV company are set to post their eighth consecutive monthly loss. The deteriorating financial health and the bankruptcy woes are the major reasons behind this collapse, which is keeping major investors at bay.
According to the latest MULN news, the company is set to qualify for selling Class 1 EV cargo vans to all branches of the US government. The recent reports suggest that Mullen Automotive and RRDS are moving forward with the GSA to finalize the qualification.
Other positive developments for MULN stock include the acknowledgment of full compliance from Nasdaq. Previously, Mullen Automotive, Inc. was facing non-compliance as it failed to meet the bourse's minimum bid and annual shareholder meeting requirements. This could be a reason behind the decrease in selling pressure on the stock.
After the confirmation from Nasdaq, Mullen's shares will continue to trade on the top US exchange under the ticker NASDAQ: MULN.
In the 4H timeframe, MULN has broken out of the downward trendline, which is a very positive sign for the Bulls. This breakout has the potential to transform into a bigger rally if the stock reclaims $6.34 support, which is marked by a red line in the following chart.
While this would still not make MULN stock price prediction bullish, it might still propel it toward the $8 mark, which would be a 52% upside from the current price level. In case of a pullback, the $4.48 support must be held to avoid more bleeding in the coming weeks.
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