Churchill Capital stock price continues to impress: CCIV targets $33

Summary:

The last six weeks have seen a sharp reversal in the Churchill Capital stock price. Furthermore, CCIV looks likely to trade even higher in the days ahead.

The last six weeks have seen a sharp reversal in the Churchill Capital stock price. Furthermore, CCIV looks likely to trade even higher in the days ahead.

Churchill Capital IV Corp (CCIV: NYSE) closed at $28.82, up $2.50 (+9.50%).

It was another successful trading day for CCIV. The stock has now gained over 70% from its 13th of May $17.25 low. The latest surge comes as investment banking advisory, Evercore ISI left a tour of Lucid’s facilities more than impressed. Moreover, the firm gave a glowing endorsement of the EV makers Air model.

The low stance of the sedan, the smoothness of the car’s suspension (even over the cobblestone roads of lower Chelsea), and the Air’s iconic glass ceiling combine to create a unique luxury experience.

However, it was the following assessment that would indicate that Elon Musk has a worthy rival:

our driver provided us with a preview of the power of the sedan’s EV powertrain, which we believe holds its own versus TSLA models.”

Furthermore, unlike some other EV competitors, Lucid Motors has confirmed orders. More than 10,000 deposits have been paid for the automaker’s Air Sedan edition.

Lucid CEO Peter Rawlinson made no bones as to who the competition is. Talking about Tesla’s market position at the top of the EV sector, Rawlinson outlined Lucid’s ambitions, declaring:

“we aim to make this a two-horse race.”

This is just the latest tailwind for the Churchill Capital stock price ahead of the blank cheque company’s merger with Lucid, which is expected to occur on the 23rd of July.

CCIV technical outlook

In my last report on CCIV, I discussed the importance of the 100-day moving average:

“Although CCIV failed to remain above the 100 DMA on a previous attempt earlier this month, the ambitious announcement should make it a second time lucky.“

The daily chart shows the stock has now successfully cleared this important resistance level, and as a result, has now reached the top end of a rising wedge pattern at $29.00.

I also expect this resistance to give way and maintain my original $33.00 price target. Moreover, I will double-down on my view that this target may prove to be conservative.

Given the almost daily encouraging news, the Churchill Capital stock price could overshoot $33.00 by a long way.

However, a return below the 100 DMA at $21.97 would cancel the immediate bullish outlook.