What is going on moon gang? Let's talk about lucid motors and cciv, because there were some big merger announcements today, this article just got posted on barons. Lucid motors, won't confirm it's merging with churchill. The spack is up 30 anyway. It very very much looks like the merger is going to go through it's pretty much all but confirmed at this point.

Um so exciting things ahead for both cciv and lucid motors. So here's what's going on in the article, the potential merger between special purpose acquisition, company, churchill, capital and lucid motors, seems to be one of the worst kept secrets in wall street churchill. Stock is soaring again after another report that a merger announcement was imminent, yet neither company is ready to confirm the deal. So it's one of those things that we all assume it's gon na happen, we're trading it as if it already has happened, but just so you know there is still some risk in the situation, because it's not ironed out.

It's not set in stone. Churchill stock is up about 30 at 52 in midday, training, tuesday february 16th shares traded below 37. Earlier in the day, the stock has been halted for small periods due to volatility. I believe it was actually halted three times today.

It was absolutely crazy. The deal is set to value lucid at about 12 billion dollars, which was expected. Churchill has roughly 2 billion in cash on its books, meaning it will end up with roughly 17 of the new company. That is a very rough guide of when oh and will change when or if the deal deal details emerge.

Excuse me for that, but basically um just so. You guys know special acquisition. It's a faster way for a company to go from private to public. You've probably heard of ipo's initial public offerings um that's another way to go public, but over the past year over the past two years, spac deals, special acquisitions have become very, very popular and obviously right now evs are very hot, so putting both of those together.

It's back evie, i'm expecting a lot of exciting things about this merger and even though it isn't um, we don't have it set in stone, but it very very much feels like it's going to happen with churchill stock trading at 52. The implied, updated value of lucid would be more of 40 billion. Most back deals are done based on a 10 unit price at which spax issued the stock. So if the deal completely blows up, there is a theoretical chance that see if cciv could drop back down to 10.

Just so you know, i don't think it's likely that that will happen but, like i just want you to be aware of, like the risk, it just isn't clear if the 12 billion dollar figure is the valuation today or the valuation the deal is struck at there Are too few details, churchill and lucid weren't immediately available to comment on today's report. Evmaker fisker by comparison is valued at roughly 6 billion, based on the 294 million fully diluted shares outstanding fisker plans to offer roughly 40 000 suv going on sale in 2022. Just so you know, lucid is much more considered to be a luxury brand, lucid plans to target the very high end of the auto market. It will start with an aspirational ev model that could cost more than a hundred and sixty-five thousand dollars in both uh 1080 horsepower fast charging times and more than 500 miles in range, which is a huge range for evs.

The high-end lucids could hit the streets later. This year, before the company proceeds lower-end luxury cars in 2022., they do have their. They very very quickly made a um a plant, a production plant in arizona the they are saying that they're trying to produce 30 000 vehicles in 2021. It does seem like bit of a high goal, but who knows if they pull it off? That'll be awesome, but let's see they like they were able to make that uh the plant very very quickly.

So maybe their overall production will also be as speedy, but we have to wait and see what happens. The first thing that we're all waiting to see is basically, for this deal with churchill. Capital be absolutely finalized. Um.

Now, let's take a quick look at the uh fun, the technicals of churchill capital. Actually before we go into that, i just want you to show my own churchill position. Um, there's no point in accusing me of bias. I fully admit that i am coming into today.

I own five call options on cciv at a strike price of forty dollar. I sold two of them uh. The initial cost for the entire position was seventeen hundred i locked in um a gain of two thousand seven hundred, which means i had a net profit. No matter, if cci blows up, i obviously don't want it to, but no matter what the worst case scenario is that i profit at least a thousand dollars, but you should also know that i'm invested in cciv i own 28 shares at 18, which means i'm up Almost a thousand dollars on my cciv investment, just so you know just to be completely transparent.

Now, let's go over. The chart. Cciv is currently trading at 52.70 when the market closed today february, 16th, again, 32 and thus far in 2021. It's up a jaw dropping 426 percent.

So for those of you who are new to the channel, let me quickly explain what i have going on on this screen. Uh, these white lines are just trend lines that the stock appears to be following just so, you know from the world of technical analysis when you have a perfect upward channel like this. It's actually referred to as a bear flag. You didn't mishear me.

I definitely said bear flag and the reason for that is even though it's trading upward, they do commonly break down words, but as we're reading in that article, this uh spac deal appears to be one of the worst kept secrets in wall street and actually broke the Opposite way, which it is a rarity, but it means that things are looking very, very bullish. So, even though we have this technical structure, the fundamental development completely blew it out of the water um on the bottom. Here we have the rsi relative strength index and it just maps out bullish momentum against bearish momentum when it gets very high. That's a lot of bullish momentum when it gets very low.

That is a lot of bearish momentum. So today, when cciv shot up from roughly third oops, sorry from 37 to the close above 50, a quick 35 game. Of course, this means that there was a ton of bullish momentum so moving forward for tomorrow. The main thing i will be watching today.

We saw that there was a lot of price action, a lot of shares being exchanged at the 52 mark and of course we have the current all-time high, which i'm expecting to act as resistance at 55, which is what it hit today right before a market hall. So, in terms of resistance, i will be watching 55 and 52 and in terms of support you could try to target 47.50, which was the low here. Let me go to a smaller time frame. You could try to target here 45 to 47, but in reality i will personally be watching this trend line i'll, be looking for it to be reaffirmed to go from resistance to support um.

That's the main thing i'll be watching, depending on how quickly it takes to play out it'll also come around 45. So that's my plan going into tomorrow. If you want to stay up to date with the moon gang and any technical developments related to this stock and many others make sure you hit the subscribe button and turn on your notifications, so you don't miss anything and, as always, best of luck in the markets, You.