Churchill Capital Corp IV (NYSE:CCIV) shares are trading higher Tuesday after the company announced that shareholders need to vote on July 22 whether they are in favor of the business combo with Lucid Motors. The stock was trending throughout the day on social media sites such as StockTwits.
Churchill Capital was up 9.47% at $24.28 at last check Tuesday.
Churchill Capital Daily Chart Analysis
- Shares are forming into what technical traders call a pennant pattern and could see a breakout within the next month or so.
- The stock is trading above both the 50-day moving average (green) and the 200-day moving average (blue), indicating sentiment in the stock has been bullish.
- Each of these moving averages may hold as an area of support on the chart.
Key Churchill Capital Levels To Watch
- The pennant pattern began forming in late 2020, and may see a breakout within the next couple months.
- The price will likely continue to be condensed between narrowing highs and lows until the stock is able to break above the pattern support or resistance and possibly see a strong move in the same direction.
- The Relative Strength Index (RSI) has been falling throughout the past few weeks before making a jump back up in the past couple days. The RSI now sits at 48 meaning there are almost an equivalent amount of buyers and sellers in the stock.
What’s Next For Churchill Capital?
Bulls would like to see the stock continue trading within the pattern until it reaches the end of the pennant and then breakout. Bulls would like to see a large breakout in the coming weeks with a period of consolidation following. Bulls want the stock to stay trading above the moving averages for sentiment to remain bullish.
Bears would like to see the stock break below the pattern support. A break below pattern support could cause the stock to see a further bearish move. Bears want to see the stock fall below the moving averages for a change in sentiment and possible change of trend.
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