- NYSE:CCIV dropped by 7% in early trade on Thursday.
- Investors had hoped for more news on Lucid merger.
- Merger talks may yet lead to something but longer timeframe.
Update February 4, GMT 19:30: While investors await an announcement on an illusive merger deal, CCIV bulls had taken the price to fresh highs on Wall Street.
The price was recovering to a 61.8% Fibonacci retracement of the prior day’s sell-off from $34.50 to today’s low of $26.13.
Trading at $29.79 at the time of writing, the stock is over 1% higher having found demand in the vicinity of the 25th Jan highs.
Meanwhile, for the day traders, the price is now breaking a key support in the 15 min chart, below $30, testing $29.40 support with eyes on a break to $28.76 structure which meets a 61.8% Fibonacci confluence of the latest bullish impulse.
Update February 4: Shares in CCIV continue to suffer in early trade on Thursday. Shares are currently trading at $27.87 down nearly 6%. CCIV investors were left disappointed on Wednesday as the Wall Street Journal had dashed hopes of a quick merger with Lucid Motors.
NYSE:CCIV has finally slowed down after being one of the most popular SPAC targets for investors looking to get in on the ground floor of the up and coming Lucid Motors. That momentum came to a screeching halt on Wednesday as the stock dropped by 8.25% to close the trading session at $29.49. Shares made a slight recovery near the closing bell after dropping to $27.58 before some investors jumped in at the discounted price.
The catalyst for the drop in price was a Wall Street Journal report that the highly anticipated merger between Churchill Capital and upstart electric vehicle maker Lucid Motors is not at all imminent. Investors have been piling into the SPAC stock since early January, where the initial rumors of a merger with Lucid were reported. Lucid is widely viewed as a luxury electric vehicle brand that has a chance to disrupt industry leader Tesla’s (NASDAQ:TSLA) stranglehold on the market. With a manufacturing plant in Arizona nearly ready to start production of its Lucid Air sedan, many investors believed that CCIV would be a chance to get the next parabolic electric vehicle stock at a discount.
CCIV stock forecast
But is CCIV trading at a discount? It is currently one of the highest price SPAC stocks on the market – higher even than Chamath Palihapitiya’s IPOD, IPOE, and IPOF companies. The proposed Lucid merger has already been baked into the high price, so investors who want to get in may want to wait, as the stock should continue to decline the longer it goes without an announcement for a merger.