MULN stock collapses on Tuesday despite early promise

• MULN stock continues to suffer, closing down 7% on Tuesday.
• MULN stock is suffering in the wake of a negative report from Hindenburg Research.
• MULN stock is now down to $2.47 from highs above $4 in late March.

MULN stock lost more ground on Tuesday as investors continue to digest and argue over the Hindenburg report. MULN stock had attempted to open positively on Tuesday as the overall market was buoyed by the core CPI number actually being less than expected. Risk assets looked to outperform after recent losses and MULN stock opened flat before trading modestly higher. However, as the session wore on it was not just MULN that suffered a turnaround. Risk appetites wanted and equities closed lower. MULN stock was not immune and dropped sharply to close 7.1% lower at $2.47.

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MULN stock news

Really there is not much fresh information to go over here. We had the sharply critical Hindenburg report calling Mullen another fast-talking EV hustle. Then there was some form of additional commentary earlier this week from a youtube interview with the CEO of the battery testing company that tested Mullens battery. All in all, confusion reigned and that was part of the reason for the recovery in MULN stock earlier this week. Volatility after all is a key feature of the stock. 

So confusion raged and the debate kicked off on social media with MULN stock remaining high on the most discussed lists of many stock sites. Short interest was mentioned as it appears to have grown above 20%. But with the huge recent volume, the days to cover have lessened so this will reduce pressure on shorts positions to cover. Tuesday’s price fall will also naturally lessen pressure on short positions. 

MULN stock forecast

Each spike in MULN stock is generally met with a sell-off and each spike fails at a lower and lower level. So a classic downtrend. This is high-risk penny stock investing so take necessary caution. Penny stocks are notorious for volatility among other issues. MULN stock looks to be headed straight back down, the spike has failed, and now support at $2.06 is likely to be broken. Next up below is a test of $1.

MULN stock chart, daily