If you are wondering why Mullen Automotive (NASDAQ: MULN) continues to rocket higher there are 3 good reasons that start with good news, more good news, and an incredibly bullish chart. The good news begins with the company’s acquisition of Electric Last Mile Solutions which closed last week. That deal not only expanded its production capabilities by more than 100% it accelerated the timeline to fullscale production of more than 1 model. That news is now compounded by a new hire and a new deal that promised to bring revenue and cash flow to the company well ahead of the production timeline. The bottom line is that this EV company is on fire, both the business and the market, and there is no telling how high it could go.
Mullen Automotive Gets Commercial Sales In Gear
Mullen Automotive got its commercial operations into higher gear with the hiring of John Schwegman. Mr. Schwegman comes from GM (NYSE: GM) and has over 35 years of experience in the automotive industry. He will be the company’s Cheif Commercial Officer in charge of driving growth in that segment of the business. He will oversee things like fleet sales and “other” enterprises focused on the company’s line of commercial vehicles. Mullen Automotive’s commercial lineup, after the acquisition of its controlling stake in Bollinger Motors and the new purchase of ELMS assets, includes class 1-6 vehicles, medium, and light-duty trucks.
The CCO news was amplified less than a day after it was announced when the company revealed a deal to license distribution rights for the I-Go. the I-Go is a small electric last-mile delivery truck designed and already approved for the EU markets. Its small, nimble design is made for navigating narrow streets and will help alleviate congestion as well as reduce emissions. The takeaway from the deal is that it provides an inroad to the EU market, expands the brand's presence, and it provides revenue and cash flow. Mullen appears to be well-capitalized after some fund-raising earlier this year but every bit will help it on its way to full-scale production in the US.
And on top of all of this good news, the company just embarked on what could become a full-scale nationwide tour. The tour is meant to help launch the FIVE series which is expected to begin production in late 2023 to early 2024. The tour may attract new investors as well as car buyers and this could help support the stock as well.
The Technical Outlook: Mullen Automotive’s Chart Is As Bullish As It Could Be
The chart of Mullen Automotive tells a very detailed story for technical analysts. The chart shows a company that was in a downtrend but is now in a full reversal and it is one for the textbooks. The reversal begins with bottoming action that started in February 2022. That action sparked a pop, a sideways move, and then a pullback to support that is now being confirmed. It is the confirmation of support and what is driving it that is so interesting now, however, because it has all the hallmarks of a very strong move and one that has legs if not true staying power.
To begin, the candlesticks look good and show a market that is on the move. The large green candle followed by two smaller candles and then another large green candle is a continuation pattern as well and one that could lead to a 50% gain in share prices by itself. This signal is backed up by the 30-day moving average which is coincident with the two middle candles and shows a shift in the market after a brief consolidation. Now, the price action is still moving higher and it is supported by both the indicators, MACD and stochastic, which are showing bullish crossovers and still have plenty of room to move higher within their respective ranges.
The most bullish part of the chart, however, is the volume. The volume in Mullen Automotive has spiked over the past week and hit a near-1-year high. The increase in volume is carrying forward as well and spiked again in tandem with the latest move higher. Altogether, the candles, EMA, indicators, and volume show this market is engaged and buying the stock. Add in the high short interest and there is a real chance this is going to become the next meme stock before it starts producing cars. 
