PreMarket Prep: Charting The Price Action In SPAC Stock CF Acquisition

PreMarket Prep: Charting The Price Action In SPAC Stock CF Acquisition

The SPAC market has cooled off, but there are still companies moving off acquisitions being made. One of those companies is CF Acquisition Corp CFVI, the PreMarket Prep Stock Of The Day.

The CFVI News: After the close on Wednesday of last week, it was announced video platform Rumble will go public via a SPAC deal With CF Acquisition Corp. VI, with an initial enterprise value of $2.1 billion. Included in the 8-K filing was a December 2021 investor presentation highlighting Donald Trump as having adopted the Rumble platform for his start-up media company Truth Social.

Price Action To End The Week: As expected, the issue had a much higher open Thursday and sprinted that day to $14.58 and backed off to end the session at $10.58. Although it came well short of the previous day's high on Friday, only reaching $12.28, it improved on its closing price by over $1 to end the week at $11.90.

Huge Projections For Truth Social: On Monday, for the first time, Truth Social announced details on its subscriber potential. The company is forecasting to hit 81 million users by 2026 for the new social media platform.

The yet-to-be-released app is forecasted to have 16 million users in 2022. Projections for Truth Social users are based on a Politico poll of registered voters, according to the presentation. With it being on the Rumble interface, investors aggressively purchased shares.

During Monday’s session, the issue made a new all-time at $15.48 and backed off to settle at $12.70 (new all-time closing high).

Still In Favor On Tuesday: Despite backing off the high and closing in the lower end of the range, the issue still had buyers in Tuesday’s session. After a higher open, it found support a few pennies ahead of the close at $12.73 and continued its move higher.

As of 2 p.m. EST Tuesday, the issue was having an inside day. That means the issue is trading within the previous day's range with a higher low and lower high.

Moving Forward: The issue’s all-time closing high price ($12.70) was made on Monday and it is important for the issue to keep improving on it.

As of Wednesday morning, the stock is trading down 7.39% at $12.15.

Also, in order for the move to continue, the issue will have to keep up with the monster volume that came in the previous three sessions (98.4 million, 47.5 million and 77.1 million).

New buyers will be needed to offset the sellers who own the issue from much lower levels. Currently, the issue is not on pace to match or exceed even the lowest of three high volume days.

Benzinga's PreMarket Prep airs every morning from 8-9 a.m. ET. During that fast-paced, highly informative hour, traders and investors tune in to get the major news of the day, the catalysts behind those moves and the corresponding price action for the upcoming session.

On any given day, the show will cover at least 20 stocks determined by co-hosts Joel Elconin and Dennis Dick along with producer Spencer Israel.

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