The Churchill Capital stock price should be in for a good day after Lucid motors outlined its impressive plans for the future. CCIV could be one to watch.
CCIV closed at $25.06, higher by $1.64 (+7.00%).
Churchill Capital IV Corp (CCIV: NYSE), the Chamath Palihapitiya backed SPAC, is starting to make a comeback. However, the Special Purpose Acquisition Company boom that started the year so well has more recently experienced a rough patch.
The reversal of fortunes in March was so severe that Bloomberg declared:
Sorry Folks, the SPAC Party’s Over. With lots of SPACs now selling for less than their cash holdings, the tidal wave of money that’s propped them up may soon become a trickle.
Despite the earlier gloom, fortunes have once again reversed, and this time the bulls are declaring the party is well and truly back on.
Lucid Motors, the luxury EV maker who went public via a Merger with Churchill in January, has high aspirations. Earlier this week, Lucid revealed production is firmly on schedule and expects to start deliveries of its Air Dream model in the second half of this year.
Furthermore, the automaker detailed a considerable $350 million CAPEX allowance over the next 18 months.
CCIV Technical Outlook
The daily chart suggests the Churchill Capital stock price is on the verge of breaking out to the upside.
CCIV has remained true to an uptrend from the middle of May. Moreover, it is back to the formidable resistance 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.
I maintain my $33.00 price target for CCIV and remain open to the idea that it could go even higher. However, as always, this comes with a caveat.
Should the price trade below the supportive trend at $22.90, and the 50 DMA at $21.32, this would invalidate the immediately bullish outlook.
Churchill Capital stock price (Daily)
Follow Elliott on Twitter.