- NASDAQ: IDEX has been on the back foot alongside the broader stock market.
- Allegations of misleading investors continue dogging Ideanomics Inc.
- Shares are reaching a critical support line that may determine the next moves.
NASDAQ: IDEX has been extending its downward slide, falling once again, albeit moderately. Ideanomics has been suffering from allegations of misleading investors, by touting activity in a factory and due to its questionable financials. A class-action lawsuit downed shares of the electric vehicle carmaker earlier in the week, and the sellers continue having the upper hand. Shorting the company has been rife in recent weeks.
It is essential to note that after many days in the black, technology stocks are on the back foot. The rush to buy the large FAANG stocks – as well as smaller ones like Ideanomics – has sometimes been blind and equities in the sector are now sliding. More specifically, shares of rival EVs such as Workhorse are also on the decline.
At the time of writing, NASDAQ: IDEX is changing hands at $1.36, down by only seven cents – but some 5% from the previous close. The first support line to watch is $1.26, which was teh low point on Tuesday, July 7. If this critical line breaks, the road to the pre-surge levels would be open.
Ideanomics Inc. traded at $1.14 before leaping and eventually hitting a 52-week high of $3.98. Shares of the EV makers already dropped by more than two-thirds from those highs.