Churchill Capital IV Stock Is Nearing The End Of A Bullish Reversal Pattern

Churchill Capital Corp IV CCIV shares traded higher Tuesday possibly because of a tweet from the Lucid Motor Company. Lucid is a merger partner with Churchill Capital.

"Impossibly intuitive, inside and out. The Lucid User Experience makes its global debut at 10 AM PDT tomorrow, exclusively on the #LucidMotors YouTube channel," the tweet says.

Churchill Capital was up 3.7% at $20.13 at last check.

Churchill Capital Daily Chart Analysis:

• Shares have been falling the past few months and are trading in what technical traders may call a falling wedge pattern.
• The stock is nearing the 50-day moving average (green). This average is a potential spot of resistance for the stock.
• A cross above the 50-day moving average is a potential sign that sentiment in the stock is turning bullish.
• The Relative Strength Index shows the stock is becoming slightly more overbought throughout the past month. A breakout may happen when the stock becomes overbought and heads well above the 75 range on the index.
• See also: How to Buy Churchill Capital Corp (CCIV) Stock

Key Levels To Watch:

• The stock is nearing the potential resistance line in the falling wedge pattern, but has not broken out of the pattern as of Tuesday.
• This bullish reversal pattern happens after the stock makes a large run-up and starts pulling back. The slope of the line connecting the highs is much steeper than the line connecting the lows.
• A break above resistance could let the stock move higher, while a break below resistance may hint that the stock is not done falling.

What’s Next?

Bullish technical traders would like to see the stock break out of the wedge pattern and see a move higher. Consolidation after a breakout may hint that the stock could see a push further.

Bearish technical traders would like to see the stock fall below the pattern support line. If the 50-day moving average is able to hold as resistance, the stock may see a further push downwards.