The trading volume of QS has been increasing recently. Will its stock price rise?
7/24/2025 12:03am
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The deep research logic is organized as follows:
Okay, let's tackle this question about QuantumScape (QS) and whether its stock price will rise given the recent increase in trading volume. First, I need to look at the data provided in the references and background.
The user mentioned that QS's trading volume has been increasing, specifically citing the past ten trading days with a volume of 887.96 million shares . That's a significant number, so I should consider what that means in terms of market activity. High trading volume can indicate increased interest or speculation, which might lead to price movements.
Next, I should check the price trend forecasts. The time-series forecast shows a bullish trend for 43 days, but the continuation probability is only 25% . That's a bit concerning because a low continuation probability suggests that the trend might not hold. The support and resistance analysis from another reference shows that the current price is between the narrow and wide resistance levels, with a bearish forecast and a recommendation to sell. The historical win rate for the stock is 53.27%, which is slightly above the market average of 53.5%, but not by much.
Looking at the trend similarity-based price forecast , the expected max gain is 23.25%, but the max loss is -39.19%. The trend forecast here is bullish, which seems contradictory to the support/resistance analysis. The forecast prices for the next few days are around $13.5 to $14.13, which is higher than the current price of $12.83. However, the confidence intervals are quite wide, indicating uncertainty.
The recent news mentions an expanded collaboration with Volkswagen’s PowerCo, which brought in up to $130.7 million in funding . This could be a positive catalyst, but the stock price dropped 7.03% on the last trading day . The earnings report beat expectations, but the stock still went down, possibly due to profit-taking or market reaction to the news.
Institutional ownership is 33.11% , which is moderate. The short interest ratio is 14.33% , which is a moderate level. A short squeeze could happen if the price starts rising, but the recent price drop might indicate that short sellers are not the main drivers right now.
The technical indicators from the latest data show an RSI of 61.32, which is neutral to slightly overbought. The MACD is 0.78, indicating bullish momentum, and the OBV is 79,905.93, which is positive but not extremely high.
Putting this all together, the trading volume increase suggests higher activity, but the mixed trend forecasts and recent price drop complicate the outlook. The bullish forecast from trend similarity and the positive news from the PowerCo deal could drive the price up, but the bearish support/resistance levels and the recent earnings-driven sell-off might counteract that. The user's profile shows a preference for technically strong and high-profitability stocks, so the technical indicators and recent news might align with their strategy. However, the high risk of a significant loss as per the trend similarity forecast should be a caution.
I need to structure the answer to address the user's question by weighing the volume increase against the conflicting trend indicators and recent events. Highlighting the potential upside from the collaboration but cautioning against the bearish technicals and recent price drop would be key. Also, considering the user's short-term investment horizon, the time frame for the price movement is crucial.
I should present the data in a clear, structured way with tables and bullet points, as per the format requirements. Make sure to include the necessary citations and visualize the trading volume data as specified. The conclusion should be definitive but balanced, reflecting the mixed signals from the data.
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### **Conclusion**
**QuantumScape (QS)** exhibits **mixed signals** regarding its stock price outlook despite **recently elevated trading volume**. While **bullish catalysts** such as the **Volkswagen PowerCo collaboration** and **positive earnings surprises** suggest upside potential, **bearish technical indicators** and **market skepticism** temper optimism. Here’s a structured analysis to guide your decision:
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### **Analysis**
#### **1. Trading Volume Surge**
| Metric | Data | Implication |
|--------|-------|--------------|
| **10-Day Volume** | 887.96M shares | **High liquidity**, signaling **increased investor interest**. |
| **Short Interest** | 14.33% of float | **Moderate short squeeze risk**, but recent price drop (-7.03%) suggests **profit-taking** rather than forced buying. |
| **Institutional Ownership** | 33.11% | **Stable institutional presence**, but no recent upgrades/downgrades . |
|code|Ticker|Name|Date|Trading Volume|market_code|
|---|---|---|---|---|---|
|QS|QS.N|QuantumScape|20250723|7.8357319E7|169|
#### **2. Price Trend & Technicals**
| Indicator | Current Reading | Outlook |
|-----------|------------------|---------|
| **RSI (14-day)** | 61.32 | **Neutral**, nearing overbought territory. |
| **MACD** | 0.78 | **Bullish momentum**, but **divergence** with price action. |
| **Support/Resistance** | Current price ($12.83) between narrow ($11.86–$14.73) and wide ($3.25–$11.86) levels | **Bearish setup**, with price **swinging** near resistance. |
| **Trend Forecast** | 23.25% upside potential vs. 39.19% downside | **High volatility**, **uncertain breakout**. |
#### **3. Market Catalysts**
| Catalyst | Impact | Recent Data |
|----------|---------|--------------|
| **PowerCo Deal** | **Positive** | $130.7M funding secured , but stock dropped post-announcement . |
| **Earnings Beat** | **Neutral** | Q2 EPS (-$0.20 vs. -$0.21 est.) , but **cash runway extended to 2029** . |
| **Competition** | **Negative** | Solid-state battery race heating up (e.g., Desay Battery , Volkswagen ). |
#### **4. Risk/Reward**
| Scenario | Probability | Price Target |
|----------|-------------|--------------|
| **Bullish Breakout** | 25% | $14.13 (avg. forecast ) |
| **Bearish Correction** | 75% | $12.71 (lower CI ) |
| **Stop Loss** | 39.19% | $7.51 (200-day MA ) |
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### **Final Takeaway**
**QS** is a **high-risk, high-reward play** for **short-term traders** with a **bullish outlook on solid-state batteries**. The **$12.83–$14.13 range** offers **entry potential**, but **strict risk management** is critical due to **volatility** and **mixed technicals**.
**Final Recommendation**:
- **Buy at $12.83** (current price) with **stop loss at $12.71** (lower CI ).
- **Target $14.13** (bullish forecast ) or **exit at $13.50** (avg. near-term price ).
- **Monitor RSI (61.32)** and **MACD (0.78)** for **momentum shifts**.
🚀 Let me know if you need further adjustments!