I often point out, for stocks, that are descending, that it’s easy for the brain to look at a chart, see the price at the bottom of the chart, and figure it can’t go lower. When we see a person standing on the sidewalk, we don’t assume they’re going to sink into it. Likewise, a price should stand firm at the bottom of a chart. Right?
An easy way around this delusion is by way of SlopeCharts‘ ability to be stretched. Looking at Lucid (LCID), we can see the stock is making lifetime lows every single day, and there’s nothing standing between here and $0 except the Almighty.
