- NYSE:CCIV edged lower on Thursday down for a second consecutive day.
- CCIV sees massive volume as high short interest creates a buying opportunity.
- SPAC stocks once again see higher volume as another high profile merger is announced
Update June 11: Churchill Capital Corp IV (NYSE: CCIV) ditched the broader market upbeat momentum and lost over 4% on Thursday. The stock, however, settled near $25.50, recovering ground modestly in post-market closing. CCIV shares tracked the weakness in the Electric Vehicles (EV) stocks while markets grow tired of the merger rumors with Lucid Motors. CCIV extended correction from three-month highs of 27.85 into the third straight day on Thursday, as the bears looked to test the June 7 critical support near $24.30.
A report on the high short interest in CCIV has led to social media retail investors buying up shares leading to a larger than normal volume for the stock. The current obsession with short squeezes have made any stock with a higher short percentage as a potential target by Redditors, and the strong week by CCIV could be due in part to retail piling in. CCIV saw the second highest trading volume on SPAC stocks on Friday, as well as some sympathy from the rest of the electric vehicle sector trading higher to close the week.
CCIV stock news
CCIV took a back seat on Friday as another high profile SPAC merger was announced after the closing bell on Thursday. Noted investor Bill Ackman finally reported that Universal Music Group would be the merger target for his SPAC Pershing Square Tontine Holdings (NYSE:PSTH). The long-awaited announcement seemed to disappoint some investors, as shares of the SPAC fell by 11.94% on Friday following the news.
Update June 10: Churchill Capital Corp IV (NYSE: CCIV) ended Thursday in the red at $ 25.38, down 4.35% Wall Street head firmly higher ahead of the opening, trimming most of its gains ahead of the close. Investors struggle to price in soaring US CPI which soared to 5% YoY in May, raising at its higher pace in almost 13 years. The slide seems linked to some profit-taking rather than to anything else. The upside remains favoured in the long-term run.
Update June 10: Churchill Capital Corp IV (NYSE: CCIV) is ceding ground on Thursday, falling by some 4% to around $25.45. Shares of the blank-check company are correcting some of the significant gains and they remain up by over a third in the past month. Nevertheless, the much-needed correction comes despite general bullishness in markets – the S&P 500 has hit a new record high. Critical support awaits CCIV at $23.56, a temporary high point on the way up. Recapturing $26 is essential to reach new cycle highs.
Update June 9: After Churchill Capital Corp IV (NYSE: CCIV) eked out a marginally gain on Tuesday – proving its strength in the face of selling pressure – shares are ready to rally again. Wednesday's premarket trading is pointing to a fresh upside move, alongside other stocks from the EV sector. Immediate resistance awaits at $26.90, which was the "shoulder" level after equity's upside swing in March. It is unsurprising that shares stalled just under that point. Further above, the March 1 high of $30.63 awaits before that month's closing high of $31.10.
Update June 9: After witnessing good two-way price swings, shares of CCIV (NYSE: CCIV) finished modestly higher by 0.53%. The stock price rallied as high as $27.85 before reversing sharply to $24.70. However, the stock managed an impressive comeback to settle at $26.64. Fundamentally, the sentiment across the EV sector is growing stronger and markets believe that CCIV stock is too cheap to ignore at these levels. Further, news that Tesla CEO Elon Musk canceled its upcoming Plaid+ model this weekend continues to benefit its competitor in CCIV.
Update June 8: NYSE:CCIV managed to close the day in the green at $ 26.64, adding a modest 0.53%, despite US indexes remained lifeless, closing the day mixed around their opening levels. The stock has been underpinned by news indicating that CEO Elon Musk suddenly announced the cancellation of the Model S Plaid+ edition, which was seen as a the direct competition to Lucid’s Air sedan.
NYSE:CCIV exhibited incredible strength this week as investors continue to buy back into the SPAC stock with growing anticipation for the impending merger with Lucid Motors. Shares have now created a new support above both the 50-day and 200-day moving averages, and the stock should continue its bullish trend leading up to the merger date. On Friday, CCIV added a further 4.31% and closed the week at $23.95, which is the highest level the stock has seen since April.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.