Rivian Inventory Could Lastly be a Purchase, However Let’s Have a look at the Chart

Ford  (F) , Rivian  (RIVN)  and different auto shares have been all booming greater on Tuesday and it was day to be an automotive investor. That is even when the newest stretch of buying and selling hasn’t been that good.

Basic Motors  (GM)  is up about 7% on the week, together with an 8.9% rally on Tuesday after it introduced its quarterly supply outcomes on Monday. 

Ford reported its third-quarter supply outcomes Tuesday morning and climbed over 7% on the day because of this. It is up barely at present. 

Lastly, we’ve Rivian, which rallied greater than 13% on Tuesday after it confirmed its manufacturing goal for the 12 months of 25,000 autos. 

Regardless of provide constraints and rising inflation, Rivian continues to be on monitor. It produced greater than 7,300 autos within the quarter and is now simply 10,683 autos in need of its purpose.

Can that repair the inventory worth?

Buying and selling Rivian Inventory

Above is a weekly chart, highlighting the ache that Rivian inventory has gone via this 12 months. Not solely as a younger automaker, however an unprofitable producer and a development inventory.

As you already know by now, development shares have paid the final word worth amid this bear market.

Discover a couple of issues about this chart, although.

First, the inventory didn’t make new lows final week whereas most of the main US indices did. In reality, Rivian continues to carry many months value of lows.

Second, it continues to carry the weekly VWAP measure and the 21-week transferring common.

It nearly had an inside week final week, however regardless, the inventory is flirting with a weekly-up rotation over $35.76. It is down barely on Wednesday, off about 2%, however the patterns stay intact. 

Buying and selling an upside rotation in a bear market could be robust, but it surely can be worthwhile. If we shut above final week’s excessive, we may see a push to the two-month excessive between $40.50 and $40.90.

Rivian inventory put in a double-top in that zone, so it could very nicely function resistance. Nonetheless, a push via this stage opens the door to $50.

On the draw back, it’s fairly easy: The 2-week low is $31.86, whereas the September low is at $30.71.

To lose these marks will doubtless imply that Rivian inventory additionally misplaced the weekly VWAP and the 21-week transferring common. In that case, extra draw back may very well be in play and it’s a “no-touch” for bullish merchants.