Clover health News– Page 2 of 2

The Clover Health stock price has lost 60% from its June high. So is the 'Wallstreetbets' pump over for CLOV, and what can we expect next? Clover Health Investments Corp (CLOV:NASDAQ) closed at $12.04, down $0.52, (-4.14%) Shares in healthcare technology company Clover health jumped to life earlier in the month. However, the stock has dropped 58% from the 4th June high at $28.83 and appears to be in for more of the same this week. Clover was brought to market in January due to a reverse merger with venture capitalist and 'SPAC' king Chamath Palihapitiya's Social capital. SPAC's have become one of the hottest investment trends in 2021 and increasingly used as an alternative to an IPO. Special Purpose acquisition companies (SPAC's) are blank-cheque companies with the sole purpose of raising capital to finance the purchase of existing companies. Similar high-profile SPAC deals include Virgin Galactic, Palantir Technologies, and Churchill Capital. January was a good month for SPAC investors. Walstreetbets had jumped on the craze, fuelling parabolic rises in not just the names mentioned above but many more. CLOV became a firm favorite of the retail investor's forum, and by January the 8th, it was trading at $17.18, around 70% higher than a month earlier. Hindenburg Research Report Like all good things, it wasn't to last. In February, notorious short-seller Hindenburg Research released a damning report accusing Chairman Chamath of misleading CLOV investors and neglecting to mention an ongoing Department of Justice (DoJ) investigation into the company's practices. Despite a swift response from Palihapitiya, who claimed the report was: "rife with personal attacks, thin facts, and bluster." Clover Health was duly dumped, and by May, was trading at $6.31. However, with the Clover health stock price close to imploding, the retail army of Wallstreetbets came to its rescue. CLOV Technical Outlook CLOV surged in popularity once again, and as the forum mentions increased, so followed the stock price. Hindenburg's report had lead to an increasing number of shorts betting against the CLOV share price. And we all know what happens to short stocks in 2021. Between the 7th and 9th of June, CLOV exploded higher, rallying 207% to 28.83, before reversing sharply. Since then, the stock has closed lower in 14 out of the last 16 sessions. Furthermore, CLOV has now reached an important support level. The 4-hour chart highlights a horizontal trend line from the 27th of February high at $11.66. The trend is seen on the chart at Friday's closing price of $12.03. Therefore, today the stock will open either above or below the key support. A failure to hold $12.00 could prove fatal for CLOV. This would suggest the latest effort to squeeze the price has well and truly failed (for now). However, the stock still has a high concentration of shorts. Moreover, it still enjoys huge popularity on the trading forum. Regardless of technicals, it's a perilous game to short meme-stocks. Second-guessing the price action from here leaves too much to chance. My advice would be to sit this one out as it could prove damaging to the health of both longs and shorts. Clover Health stock price (4-Hour) Follow Elliott on Twitter.