Mobileye Global Inc. (NASDAQ: MBLY) shares plummeted by 28% this week, leaving investors unimpressed by the autonomous driving company's presentation at the CES consumer electronics trade show in Las Vegas. As the stock finds significant resistance near the pattern's upper trendline, investors should monitor crucial support levels to assess the stock's recovery potential. Let's dive into the key support levels and catalysts that could drive Mobileye's stock price in the near to mid-term.



1. Key Support Levels to Watch
- $15: A convincing breakdown below the ascending channel's lower trendline and 50-day MA could see the shares initially decline to around $15. This level on the chart may provide support near a horizontal line that connects the late August countertrend peak, the September peak, and mid-November pullback low.
- $12: Selling below the $15 level brings the $12 level into play, a location on the chart where the shares may encounter buying interest near a series of prices situated in close proximity to the mid-October trough.
- $10.50: Further downside could trigger a fall to the $10.50 level. Investors may look to scoop up shares in this area on the chart near the stock's pronounced September swing low.



2. Primary Catalysts for Mobileye's Stock Price
- Inventory Glut Normalization: Mobileye's customers have been working through their inventory glut, which has been a significant factor in the company's recent performance. The normalization of inventory levels could lead to increased demand for Mobileye's products, driving the stock price up.
- Add-on Design Wins with Top 10 Customers: Mobileye has ADAS add-on design wins with all 10 of its top customers, and the majority of these projects extend their business into the early 2030s. These long-term contracts provide a stable revenue stream and could drive the stock price up as these projects come to fruition.
- Expansion into China: Mobileye's expansion into the Chinese market through its partnership with ZEEKR Intelligent Technology Holding Ltd. (NYSE: ZK) could serve as a significant catalyst for the company's growth. The deployment of EyeQ5-based SuperVision in China will serve as a proof point and beachhead for advanced product growth for its global clients.
- Cost Cutting and Key Objectives: Mobileye is discontinuing its expensive in-house LiDAR development and instead using third-party solutions due to the vast improvement of its next-gen computer vision stack and in-house imaging radar technology. This cost-cutting measure could lead to improved profitability and increased investor confidence, driving the stock price up. Additionally, Mobileye's strategic objectives for the future, such as securing and expanding its long-term ADAS position with core customers and deploying EyeQ6-based products, could also drive the stock price up as these objectives are achieved.
- Technological Advancements: Mobileye's continued development and deployment of advanced driver assistance systems (ADAS) and autonomous driving technologies and solutions could drive the stock price up as these innovations gain traction in the market.

In conclusion, Mobileye's recent performance has been mixed compared to its peers in the ADAS and autonomous driving sectors. However, the company's progress in its MaaS Robotaxi product and cost-cutting measures suggest that it is positioning itself for future growth. Investors should monitor the key support levels and primary catalysts discussed in this article to assess Mobileye's stock recovery potential and identify potential entry points for long positions.