Shares of solid-state battery developer QuantumScape Corp ( QS ) are trading lower on Monday, pulling back from a recent surge despite no new company-specific catalysts for the session. The downturn follows a period of strong gains that pushed the stock to a new 52-week high last Tuesday, suggesting a technical correction may be underway.

What To Know: The preceding rally was driven by significant operational progress. In late June, the company announced its "Cobra" process, a manufacturing breakthrough poised to increase the production speed of its proprietary ceramic separators 25-fold.

This news, coupled with a strategic lease termination expected to save approximately $18.7 million, bolstered investor confidence in the company's path toward commercialization.

However, the rapid climb sent a key technical indicator flashing red. By the end of last week, QuantumScape's ( QS ) daily Relative Strength Index (RSI) soared above 90. An RSI reading above 70 typically signals overbought conditions, while a move above 90 is considered an extreme level that often precedes a price correction as traders take profits.

Investors are now keenly awaiting QuantumScape's ( QS ) second-quarter 2025 financial results, scheduled for release after the close on Wednesday. Analysts project a loss of 25 cents per share, but the focus will be on further updates on its technology and financial outlook.

Price Action: According to data from Benzinga Pro, QS shares are trading lower by 14.4% to $12.54 Monday morning. The stock has a 52-week high of $15.03 and a 52-week low of $3.40.

Read Also: 3 Stocks With Sky-High Overbought Signals: QuantumScape ( QS ), Opendoor, Cogent Flash RSI Red Flags

How To Buy QS Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in QuantumScape’s case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

Image: Courtesy of QuantumScape ( QS )