Why Capitol Investment Corp. IV (CIC)’s Stock Is Melting Down -5.03% Today

Today’s big question for investors is, “what’s going on with Capitol Investment Corp. IV (NYSE:CIC) stock? Its price is nose-diving -0.45 points, trading at $8.5 levels, and is down -5.03% from its previous close of $8.95. The shares seem to have an active trading volume day with a reported 266000 contracts so far this session. CIC shares had a relatively better volume day versus average trading capacity of 398.06 thousand shares, but with a 1.9 million float and a -12.43% run over a week, it’s definitely worth keeping an eye on. CIC share price has been trading recently between $8.8 and $9.51.

The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Nesco Holdings I, Inc. Pre-Releases Selected Preliminary Unaudited Second Quarter 2019 Financial Results” and dated July 22, 2019.

Looking at the current readings for Capitol Investment Corp. IV, the two-week RSI stands at 3.28. This figure suggests that CIC stock, for now, is overbought, meaning that the shares are not stable in terms of price movement. The stochastic readings, on the other hand, based on the current CIC readings is similarly very revealing as it has a stochastic reading of 10.71% at this stage. This figure means that CIC share price today is being overbought.

Technical chart claims that Capitol Investment Corp. IV (CIC) would settle between $9.37/share to $9.8/share level. However, if the stock price goes below the $8.66 mark, then the market for Capitol Investment Corp. IV becomes much weaker. If that happens, the stock price might even plunge as low as $8.38 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.74. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.