CCIV / LCID After Merger: Bullish Hammer Above 50MA and AVWAP

The merger between CCIV and LCID has been approved today and the stock will trade under LCID from Monday.

A classic Bullish Hammer candle has formed taking support on the 50 day SMA and the AVWAP (Anchored VWAP) line anchored at the base since the merger was announced. Still the ticker is trading below AVWAP lines from the recent high, all time high and the first ever significant hike in January this year.

In my humble option, LCID needs to deal with these important resistances at $25, $27.40 and 28.90 price levels if we are hoping for a significant run. So far the Bullish Hammer above the above mentioned support levels is a good start. It has also broken out of the downward trend line that it has been following since the recent high.

Let's hope for the best! Also please let me know your opinion on it.



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