Rivian Automotive Stock News and Forecast: Will Rivian break $100 today?

view original post
  • Rivian stock holds of the bears on Tuesday but momentum slows.
  • RIVN price is still well ahead of the IPO price of $78.
  • Momentum is king, but Rivian is struggling to hold onto it.

Rivian (RIVN) stock looks likely to break $100 today as a spate of nervousness hits equity markets ahead of the Thanksgiving break. No surprise that some profit-taking should be in evidence ahead of a possible long weekend for many. With such a strong rally, it has to be expected and may even set up things nicely for the usual Christmas rally in stock markets to close out one of the strongest years ever. Rivian stock is still well up from its IPO price of $78 but has seen many cashing in their chips and walking away from the table. The stock has dropped from a high of $179 to $120 in just four trading sessions. While yesterday was actually a reasonable performance given the negative market backdrop, we feel more selling pressure is likely for this one.

Rivian (RIVN) stock news and price prediction

Bloomberg reported on Tuesday that recreational vehicle company Outdoorsy was in discussions with Rivian and Ford about putting in an order for electric trucks and SUVs. The company is looking to order up to 1,000 vehicles as part of a $100 million order. Outdoorsy CEO Jeff Cavins said the delivery may not happen until 2023, and that the company was also talking to Ford about part of the order. Ford had earlier decided not to pursue a joint development plan with Rivian for an electric vehicle. Ford has a 12% stake in Rivian so this came as a surprise to many. Amazon is also a backer of Rivian and is waiting on orders for electric vans.

Rivian (RIVN) stock forecast

The chart now shows we have almost totally retraced the gains seen since IPO. Note the opening price was $106.75. This was the first traded price, much higher than the IPO price of $78. Resistance is at $128.59 where the point of control since IPO sits. This is the price with the highest amount of volume.

Tuesday’s point of control at $120 is also resistance as we can see Rivian bouncing off this level last Thursday before using it as resistance on Monday and Tuesday. There is a volume gap below $106 until $100, so expect a break to move quickly to $100. 

Rivian is a momentum play. For momentum, volume is required. Volume is steadily dropping, indicating that momentum is also dropping. Momentum is needed to keep this elevated, so we expect more declines in the Rivian share price.

RIVN 1-day chart