Rivian Automotive Inc. (NASDAQ:RIVN) shares are trading lower Tuesday, although there looks to be no company specific news to explain the price movement. Shares are falling lower in a pattern but are nearing resistance and possibly ready for a reversal soon.
Rivian was down 4.27% at $102.52 at last check.
See Related: Did GM Poke Fun At Tesla With New Hummer EV Image? Will Elon Musk Respond?
Rivian Daily Chart Analysis
- The stock is nearing pattern resistance in what traders call a falling channel. Connecting the highs and the lows show two parallel lines where the stock has found support and resistance previously.
- A break above resistance in the pattern may show that the stock is beginning to stop the downtrend and starting to form a new uptrend.
- The Relative Strength Index (RSI) has been moving sideways since the IPO and sits at 49. This shows the stock is seeing a relatively equal amount of buyers and sellers.
What’s Next For Rivian?
The stock is downtrending in the channel, but may be setting up to break above the pattern resistance in the near future. The stock is hanging near resistance, and a break above could bring about a bullish move and a change in trend.
Bulls are looking to see the stock break above the resistance level and make a large move. Following the move, bulls want to see the stock form higher lows and make a new upward trend.
Bears are looking to see the stock fail to break above resistance, and then drop back toward support, staying within the pattern.
Related Link: 2 Members Of US Congress Now Own Rivian Shares: Here's Who And How Much They Own
