Rivian Automotive (RIVN) Price Prolongs Consolidation
Rivian Automotive, Inc. engages in the design, development, and manufacture of category-defining electric vehicles and accessories. The company was founded by Robert J. Scaringe in June 2009 and is headquartered in Irvine, CA.
Take a look at the 6-month chart of Rivian (RIVN) below with the added notations:
Chart of RIVN provided by TradingView
RIVN has moved into a clear trading range between a $31 support (green) and a $40 resistance. (red) At some point, the stock will break out of the range, and that break will likely dictate the stock’s next big move.
The Tale of the Tape: RIVN is trading in a sideways range. Long trades could be entered on a pullback to support, or on a break of resistance, with a protective stop set underneath the point of entry. An ideal short trade could be made on a break below support.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key…
Christian Tharp, CMT