No change to bearish sentiment

Rivian stock price rebounded from its all-time low at 30.66, but the 0.88% rise on the day did not fundamentally change the bearish outlook for Rivian stock price. Rivian Automotive Inc has seen its stock price plunge from its Nov. 16 high of 179.47. A flurry of bearish patterns and Elliot wave sequences provided several opportunities for traders who wanted to short the stock.

The recent rally which saw the Rivian stock price rise from $35.10 to the March 30, 2022 high of $56.76 has not changed the Rivian stock price forecast as this move n It was just a rally on which sellers issued new sell orders. Basically, there was nothing of note to drive a rally in Rivian’s stock price. His update on the delivery of cars delivered three weeks ago contained no bullish surprises.

The 2,553 cars the company said it produced in the first quarter and the 1,227 vehicles it delivered during the same period were in line with expectations. How the company tracks its ambitious 2022 delivery target of 25,000 vehicles is what determines when Rivian’s bullish stock price forecast kicks in.

Rivian stock price prediction

After completing the 1-2-3-4-5 impulse wave to the south, the corrective wave sequence did not go as planned. The rejection of the advance at 53.34 ushered in a wave of selling, with the break of price support at 35.10 reflecting the measured movement of the smaller bearish pennant pattern on the daily chart.

The rebound in price from the April 26th low at 30.66 has made this zone the support to beat. A break of this level opens the door for a push down, targeting 20.95 as a potential pivot. This is the site of the 100% Fibonacci extension of the price swing from February 28 to March 15 and ending with an upward swing through March 30.

Below the potential pivot of 20.95, 11.42 and 6.45 are potential targets to the south, being the Fibonacci extension levels of 127.2% and 141.4%, respectively. On the other hand, bulls need to extend the rebound from 30.66 towards the price mark of 35.10 (15th March low and 25th April high).

Further advance requires a break of this barrier, targeting additional targets heading north at 40.16 (14th March low) and 44.96 (9th March high). The psychological price level of 50.00 and the price mark of 53.34 are other targets to the north that are currently out of reach for the bulls, remaining bullish targets going forward.

RIVN: 4 hour chart

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Karen J. Nelson