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NYSE:CCIV extends decline on Tuesday as investors focus on the Fed.
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Tesla’s Model S Plaid launched on Thursday night, and it certainly impressed.
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Lucid has a longer range, but some are questioning how crucial that will prove to be.
Update June 17: CCIV shares saw a solid turnaround on Wednesday, despite the Fed’s hawkish surprise, which weighed heavily on the broader Wall Street indices. The EV sector stock tracked the bounce in its closest competitor Tesla Inc. (TSLA) and rallied as much as 6.50% on the day, snapping a six-day downtrend. In doing so, the stock rebounded from nine-day lows of $22.06 to close the day near daily highs of $24.09.
NYSE:CCIV extended its slide to close the week as Lucid was bumped from the EV spotlight after major announcements from both Tesla (NASDAQ:TSLA) and Nio (NYSE:NIO). On Friday, CCIV fell a further 0.95% to end the trading session at $25.14. The stock has continued to consolidate despite hitting higher highs and higher lows as of late, which could mean we are awaiting another breakout to the upside. Shares are still firmly trading above the 50-day and 200-day moving averages, which signals that the short-term trend for CCIV is still bullish.
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Shares could also be falling after rival Tesla impressed the world on Thursday night with the unveiling of its Model S Plaid. Tesla once again showed why it is the industry leader when it comes to electric vehicles, as the super premium model blows away previous acceleration and top speeds. The model is expected to be a direct competitor to Lucid’s Air sedan, and investors may be lamenting that the Model S Plaid will have a several month headstart on Lucid as the new company figures out its production schedule.
With the sudden cancellation of Tesla’s uber premium Model S Plaid+ edition, Lucid boasted that it was now the only sedan on the market with a range of more than 500 miles on a single charge. Some are beginning to question just how important this is, considering most Americans only drive about 30 miles per day on average according to a recent Car and Driver survey. Tesla’s vehicles have been selling stronger than ever with only a moderate range of approximately 275-300 miles per charge.
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Update June 15: Churchill Capital Corp IV (NYSE: CCIV) closed Tuesday down 6.26% at $22.61, as Wall Street closed in the red amid the looming US Federal Reserve’s decision on monetary policy. The central bank is expected to hold back this time, although speculative interest awaits hints on tapering. It is too early for the central bank to retrieve monetary support, but any comment on such direction will put additional pressure on stocks in the near-term.
Churchill Capital Corp IV (NYSE: CCIV) is on the back foot once again. Apart from profit-taking related to its 40% increase within one month, shares of the company merging with Lucid Motors have suffered a blow from rival Tesla. Elon Musk’s firm launched its Model S Plaid, impressing critics. At the time of writing on Tuesday, shares are down some 3% to around $23.40. Critical support awaits at $22.96, the June 3 closing level and the lowest so far this month. Holding above that point would serve as a bullish sign while failing could trigger additional falls.
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Update 2 June 16: Markets are proving surprisingly resilient on Wednesday as the Fed is eagerly awaited. CCIV has bounced nearly 3% as sector leader Tesla (TSLA) remains in the green while peers NIO and Plug also strengthen. Caution is needed ahead of the Fed meeting later on Wednesday and also a potential Moving Average Convergence Divergence (MACD) bearish crossover in CCIV shares.
Update June 16: Churchill Capital Corp IV (NYSE: CCIV) is set to kick off Wednesday’s trading session with yet another climb down from the highs. Premarket data is showing a loss of nearly 1% to $22.41. Only last week, shares closed above $26 for three consecutive days. The company that is about to merge with Lucid Motors is still benefiting some 23% up in the past month but has lost critical support at $22.96, the previous June low. That implies a further deterioration unless some significant fundamental news or bargain-seekers come in. For now, technicals point lower.
Update June 16: Churchill Capital Corp IV (NYSE: CCIV) extended correction from three-month highs of $27.85 into a sixth straight session on Tuesday. The CCIV stock tumbled nearly 7% to finish the day just above $22.50. The pre-FOMC caution weighed on the investors’ sentiment, in turn, negatively impacting the EV stock. Markets have shrugged off the latest chatter that CCIV’s merger with Lucid may close at the end of July. All eyes remain on the Fed outcome amid expectations of a tapering announcement, which may exacerbate the pain in the stock.
