FundaTecho Analysis | QS Reversal, PIPE Driven Selloff Complete?QuantumScape is the golden grail of lithium batteries, being the major player in developing solid state battery tech. It also has established names behind it such as Bill Gates and VW with a 35% stake. This working partnership allows us to overlook their dismal revenue forecasts as profitability will follow what is set to become a game changer in many industries beyond EVs.
QS has dropped significantly in price since December and is currently in the zone for a reversal. The biggest risk that traders face from SPACs is the wave of shares that are added to supply once the typical lockup period has expired, however a savvy trader also knows that this info can be found in the S1.
Every SPAC completes its acquisition and share offering on different terms, for QS the main PIPE share lockup expired the earliest possible due to elevated price levels out the gate. The bearish pressure is additionally compounded by traders that enter short positions in anticipation of the lockup period expiration.
For technicals, we saw the price momentarily wick down to fill a gap from December 8th at $44~ before quickly being bought back up to the current support at $48, which also coincides with the ichimoku cloud on the daily. Accumulation is nearing an end as price fades out of the downtrend from the ATH and into the daily cloud.
Price targets:
$84 gap fill
$106
$131 (ATH)
