RIVN Up The Engine For A 20% Move?

California’s Governor Gavin Newsome made headlines recently when the state banned the sale of new gas-powered cars by 2035. Some states, like Virginia, have trigger laws in place that require them to follow the “Golden State’s” lead on car emission standards. (1)

With or without trigger laws, other states, countries, manufacturers… are likely to implement some deadlines of their own. Let’s just hope the deadline makers figure out how to reduce the cost of replacement batteries by 2035.

When the government mandates, investors should listen, especially in a market with only 5% penetration.

WIRED recently put out a strong review of Rivian Automotive’s (RIVN) R1T and R1S. (2) Rivian designs, develops, manufactures, and sells electric vehicles and accessories. The company offers five-passenger pickup trucks and sports utility vehicles. It provides Rivian Commercial Vehicle platform for electric Delivery Van with collaboration with Amazon.com.

Considering the review and California news, we made RIVN this week’s COW (chart of the week).

The electric vehicle (EV) maker is walking a tightrope, straddling support on its 50-day moving average. One way or the other, RIVN’s next short-term move is likely to be about 20%. If bulls can push Rivian past $33, then there isn’t much resistance until reaching its recent high of $40.56. The picture on the downside isn’t much different. If RIVN closes below $30.50, then there isn’t much in the way of support until $25ish.

There are some signs that Wall Street is leaning towards taking RIVN higher. The truck maker’s five-day Rate of Change (ROC) is gaining strength and moving into positive territory, and its Relative Strength Index (RSI) turned higher after a flat period following a dip.

RIVN

Investors interested in Rivian Automotive, Inc. (RIVN), might consider waiting for RIVN to pick a side. Bulls could take a position if RIVN closes above $33 and bears make their move if the stock closes below $30.50. Either way, the stock could make a substernal move once it gets off the 50-day tightrope.

Swing/day trading is very risky and only appropriate for the most aggressive investors who can afford to lose large sums in short timeframes.

Rich Meyers
Investing Trends

 

1 – https://www.kbb.com/car-news/massachusetts-washington-to-ban-gas-powered-cars-by-2035/

2 – https://www.wired.com/review/rivian-r1t-and-r1s/