What's Next For Churchill Capital Stock: Technical Levels To Watch

Churchill Capital Corp. CCIV shares gained 9.42% Wednesday, closing at $28.82. 

The company's shareholders are set to vote July 22 on a SPAC deal with Lucid Motors. 

Here's a look at technical levels for the SPAC stock. 

Churchill Capital Daily Chart Analysis

• Shares were falling the past few months, but now look to have broken out what technical traders call a falling wedge pattern.
• The stock is trading above the 50-day moving average (green), indicating sentiment in the stock has been bullish. This moving average may hold as an area of support.
• The Relative Strength Index (RSI) is heading toward the overbought range, meaning there are many more buyers than sellers in the stock.

Key Churchill Capital Levels To Watch

• The stock looks to have broken out of a falling wedge pattern and has been steadily trending higher.
• The stock looks like it formed higher lows and has started moving up once again. This can be shown with the orange trendline.
• The RSI is heating up and is nearing the overbought range. The stock almost reached this range in early June 2021, but was rejected and fell lower. Things are looking better as it is attempting to break into the overbought range for the second time now.

What’s Next For Churchill Capital?

Bullish traders would like to see the stock continue to hold the higher low trendline that just started to form. If the stock can hold above this trendline and the moving average, then bulls will maintain control of the stock.

Bearish traders would like to see the stock fall below the higher low trendline. If the stock falls below the higher low trendline and the moving average the stock may see a strong bearish move. Bears want to see the stock fall back to where the pattern support was.

Photo: the exterior of the Lucid Air sedan. Courtesy photo.