The Churchill Capital Corp IV stock price gained 0.0409% on the last trading day (Wednesday, 11th Aug 2021), rising from $24.46 to $24.47. , and has now gained 6 days in a row. It is not often that stocks manage to gain so many days in a row, and falls for a day or two should be expected. During the day the stock fluctuated 4.08% from a day low at $24.02 to a day high of $25.00. The price has risen in 7 of the last 10 days and is up by 1.62% over the past 2 weeks. Volume fell on the last day by -4 million shares and in total, 8 million shares were bought and sold for approximately $193.26 million. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days. Show The stock lies in the middle of a very wide and strong rising trend in the short term and a further rise within the trend is signaled. Given the current short-term trend, the stock is expected to rise 18.05% during the next 3 months and, with a 90% probability hold a price between $25.87 and $36.60 at the end of this 3-month period. Signals & ForecastThere are mixed signals in the stock today. The Churchill Capital Corp IV stock holds a buy signal from the short-term moving average; at the same time, however, the long-term average holds a general sell signal. Since the longterm average is above the short-term average there is a general sell signal in the stock giving a more negative forecast for the stock. On further gains, the stock will meet resistance from the long-term moving average at $24.73. On a fall, the stock will find some support from the short-term average at $23.54. A break-up through the long-term average will give another buy signal, while a fall below the short-term average will add another sell signal and strengthen the general signal. A sell signal was issued from a pivot top point on Wednesday, June 30, 2021, and so far it has fallen -15.09%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely. The stock had a Golden Star Signal on Tuesday, November 03, 2020 in the long-term chart. Golden Star Signal is when the short-term moving average, the long-term moving average, and price line meet in a special combination. This combination is very rare and often followed by long and strong gains for the stock in question. Support, Risk & Stop-lossChurchill Capital Corp IV finds support from accumulated volume at $23.56 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested. This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $0.98 between high and low, or 4.08%. For the last week, the stock has had a daily average volatility of 4.12%. Since the Churchill Capital Corp IV has been rising for 6 days in a row, the risk over the next couple of days has increased. Our recommended stop-loss: We hold an negative evaluation for this stock. No stop-loss is set. Is Churchill Capital Corp IV stock A Buy?Churchill Capital Corp IV holds several negative signals and we believe that it will still perform weakly in the next couple of days or weeks. We, therefore, hold a negative evaluation of this stock. Current score: -1.924 Sell Candidate UnchangedInsiders are very positive buying more shares than they are selling in Churchill Capital Corp IVIn the last 28 trades there were 1.07 billion shares bought and 422.39 thousand shares sold. The last trade was done 134 days ago by Alnowaiser Turqi A. who bough 11.21 thousand shares. The large amount of stocks bought compared to stocks sold indicate that the insiders believe there is a potential good upside. In some cases larger purchases can be explained by due date for stock options.
The predicted opening price is based on yesterday's movements between high, low, and the closing price.
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Volatility and Risk Daily Average Volatility: 4.12 % Overall Risk: Medium
Volatility
4.12 %
Overall Risk
Very High
Support & Resistance
Resistance: $25.18
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Stop hunting is a strategy that attempts to force some market participants out of their positions by driving the price of an asset to a level where many individuals have chosen to set stop-loss orders. The triggering of many stop losses at once typically creates high volatility and can present a unique opportunity for investors who seek to trade in this environment.
The fact that the price of an asset can experience sharp moves when many stop losses are triggered is exactly why traders engage in stop hunting. The price volatility is useful to traders because it presents potential trading opportunities. For example, assume that ABC Company's stock is trading at $50.36 and looks as though it may be heading lower. It is possible that many traders will place their stop losses just below $50, at $49.99, so that they can still hold onto the shares and benefit from an upward move while also limiting the downside. If the price falls below $50, traders expect a flood of sell orders as many stop losses are triggered. This will then push the price lower and give some traders the opportunity to profit from the decline and perhaps even open a bullish position on an expected rebound to the previous range. Stop-loss orders are types of orders that are slightly more complicated than a traditional market order or limit order. In a stop-loss order, an investor will place an order with their broker to sell a security when it reaches a certain price. For example, if you own shares of company XYZ Inc., currently trading at $70, and you want to hedge against a significant decline, one option would be to enter a stop-loss order to sell your XYZ holdings at $68. If XYZ moves below $68, your stop-loss order is triggered and converts into a market order. Your XYZ holds would be liquidated at the next available price. Stop-loss orders are designed to limit investors’ losses on a long position. A stop-loss order can protect a short position as well. Stop hunting is relatively straightforward. Any asset with significant enough market volume will be moving in a more or less defined trading zone with areas of support and resistance. The downside stop losses tend to be clustered in a tight band just below resistance, while the upside stop losses sit just above support. Larger traders looking to add to or exit a position can shift the price action with volume trades that amount to stop hunting due to their market impact. Generally, this will be signaled on the charts by increasing volume with a clear directional push. For example, the price action might bounce off support twice on increasing volume before breaking through. Smaller traders jump on this stop hunting behavior to realize profits from the volatility it creates in the short term. Depending on your strategy and indicators, you can participate in the stop hunting on the downside with a short position or consider it an opportunity to open a long position at a price lower than the recent trading range. |
