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- CCIV merger speculation keeps investors thinking!
- CCIV one of Reddit-driven retail stocks for 2021.
- Churchill Corp subject of merger speculation with Lucid Motors.
Update: Churchill Capital Corp IV (NYSE: CCIV) dropped nearly 6% to settle below the $33 mark on Monday, having found strong support just above $30. The shares of the blank-check company corrected lower after the recent rally to the all-time-highs of $36. The pullback could be associated with the investors’ anxiety amid a lack of clarity on the likelihood of a merger with Lucid Motors. This comes after Lucid Chief Executive and Technology Officer Peter Rawlinson said that he couldn’t confirm or deny the rumors of a merger that would take Lucid public.
Update: Churchill Capital Corp IV (NYSE: CCIV) extended its slide after opening in the negative territory and touched a session low of $32.66 before staging a modest rebound. As of writing, the stock was trading at $33.50, losing 3.3% on a daily basis. Nevertheless, Monday’s decline seems to be a technical correction of last week’s impressive rally, during which CCIV rose more than 50% and notched a new record high of $36. In fact, the stock is up nearly 175% since the beginning of the year as investors remain focused on prospects of a merge with the electric-vehicle startup Lucid Motors Inc.
Churchill Capital Corp IV (NYSE: CCIV) has kicked off the week with a marginal decline of nearly 3% to $33.65 at the time of writing. Despite this retreat, shares of the blank-check company are still substantially higher, buoyed by expectations of a SPAC merger with Lucid Motors. Investors might be assuming that such a move is a done deal. Broader markets are moving higher, with the S&P 500 topping 3,900 points.
CCIV has been in the news again on Friday, as investors try to work out the cryptic clues in relation to a merger between CCIV and Lucid Motors. However, the first rumours of the proposed merger came to light on Jan 11 after Bloomberg reported the two were in talks in a deal that would take Lucid motors public. The deal could be for as high as $15 billion and would establish Lucid as a true competitor to Tesla (TSLA).
Investors jumped on the news, quickly pushing the share price of CCIV dramatically higher. CCIV shares closed that day Jan 11, 30% higher at $13.20. But this was merely the beginning as the retail-led rally played out, driving CCIV to $36.
CCIV Stock forecast
Is CCIV ready to charge higher? Or is it a case of buy the rumour, sell the fact? Either way, it has been a short sharp rise, in tandem with a lot of retail-led moves in 2021. But unlike a lot of other Reddit driven stocks, shares in CCIV have yet to pull back in any meaningful way. Investors would be advised to exercise extreme caution. Further news re the proposed merger probably needs to come to light this week to sustain the rally. Any delays or simple lack of information will probably result in the price sliding back.
The rise of retail and /wallstreetbets!
The timing was perfect for the jump start to the rally. January was peak /wallstreetbets and CCIV quickly became one of the most discussed stocks on the site. Retail investors piled in, taking the merger news, and running with it. Shares in CCIV nearly tripled over the next two weeks with CCIV shares peaking at $36 on Friday.
A rocky road
Investors in Churchill Corp. (CCIV) have had a few potholes along the way. On Wednesday, Feb 3, a report in the Wall Street Journal put the rally on pause. The merger was “not imminent” according to the Wall Street Journal. CCIV shares closed 8% lower on Wednesday, Feb 3.
Are CCIV and Lucid fully charged?
The situation was to quickly change however with CCIV shares recovering strongly on Thursday and Friday. CCIV shares closed out the week at a record high of $34.65, having touched $36 earlier on Friday.
The catalyst was a cryptic comment from Lucid Motors CEO Peter Rawlinson. During an interview with CNBC on Friday, Rawlinson said he could neither “confirm, nor deny” that the merger between Lucid Motors and CCIV was going ahead. Investors took this as a more positive sign than the Wall Street Journal article and piled back into CCIV shares.
CCIV Technical analysis
CCIV shares have had a short sharp rally, in tandem with a lot of retail stocks in 2021. The difference with CCIV is that there has not been a pullback. CCIV shares hit new record highs on Friday. But how much of the news is priced in. Technically support is at $28.50 and $26.61 is a key support to keep the bullish trend alive. Both RSI And MACD are at elevated levels but not yet showing overbought levels.
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