Churchill Capital Stock (CCIV) finished the day +9.30% higher on news EV maker Rivian will IPO with a $50-$70 billion valuation.
CCIV closed the day at $23.57, higher by +9.28%.
All of a sudden, CCIV is back in the spotlight. Since its February high of $64.85, the stock has been rolling downhill. However, the listing valuation of Amazon-backed EV truck maker Rivian has investors wondering if the worst is over.
The Special Purpose Acquisition Company (SPAC) merged with luxury EV firm Lucid motors and planned to take the automaker public via a reverse merger. In light of the high valuation for Rivian, money is now pouring back into CCIV.
The technicals have improved recently, and the stock is picking up momentum on the upside. On the 13th of May, the stock was trading at $17.25, its lowest since the 22nd of January. Since then, it has gained +37% and looks likely to add more in the coming sessions.
The price is running into some overhead resistance. On the daily chart, we can see a descending trend line from the 27th of April, at $23.75. Above that, a series of highs from March and April offer horizontal resistance between $24.50 and $25.00.
However, given the current momentum, the price looks likely to clear these immediate resistance levels. This would open the door for an extension to the March high of $32.97, +40% higher than the current level.
Bulls could add longs on a clear break above $25.00 and take profit on a leg higher to $32.97.
Longs could then place stops below Tuesday’s $19.78 low. At this level, we can see a rising trend in place from the May 13th low. If the price closes below this level, it will cancel the immediate bullish outlook.
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