Rivian Automotive, Inc. (RIVN) Trending in a Channel

Rivian Automotive, Inc. develops and manufactures electric adventure vehicles. It offers five-passenger pickup trucks and sports utility vehicles. The company provides electric SUVs and electric pickup vehicles.

Take a look at the 3-month chart of Rivian (NASDAQ: RIVN) below with my added notations…

Chart of RIVN provided by TradingView

RIVN has formed a down-channel chart pattern over the past three months. A channel is formed through the combination of a trend line support that runs parallel to a trend line resistance.  When it comes to channels, any (3) points can start the pattern, but a 4th test or more helps to confirm it. 

The Tale of the Tape: RIVN has formed a down channel. A long opportunity could be entered on a pullback to the channel support, which is approaching $70. Short trades could be entered at channel resistance or if RIVN were to break below the channel 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!

Good luck!

Christian Tharp, CMT 

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