The Rivian Automotive $Rivian Automotive, Inc.(RIVN)$ stock price gained 2.60% on Monday, 31st Jul 2023, rising from $26.94 to $27.64. During the last trading day the stock fluctuated 4.40% from a day low at $26.61 to a day high of $27.78. The price has risen in 7 of the last 10 days and is up by 15.21% over the past 2 weeks. Volume fell on the last day by -12 million shares and in total, 37 million shares were bought and sold for approximately $1.02 billion. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.
The stock lies in the upper part of a very wide and strong rising trend in the short term, and this may normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break-up at the top trend line at $29.14 will firstly indicate a stronger rate of rising. Given the current short-term trend, the stock is expected to rise 108.24% during the next 3 months and, with a 90% probability hold a price between $40.42 and $60.68 at the end of this 3-month period.
RIVN Signals & Forecast
The Rivian Automotive stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $26.32 and $20.49. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Monday, July 17, 2023, and so far it has risen 15.21%. Further rise is indicated until a new top pivot has been found. Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely. Some negative signals were issued as well, and these may have some influence on the near short-term development. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD).
Support, Risk & Stop-loss for Rivian Automotive stock
On the downside, the stock finds support just below today's level from accumulated volume at $25.81 and $25.51. There is a natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Rivian Automotive finds support just below today's level at $25.81. If this is broken, then the next support from accumulated volume will be at $25.51 and $24.70.
This stock may move much during the day (volatility) and with a large prediction interval from the Bollinger Band this stock is considered to be "high risk". During the last day, the stock moved $1.17 between high and low, or 4.40%. For the last week, the stock has had daily average volatility of 6.21%.
Our recommended stop-loss: $26.74 (-3.24%) (This stock has high daily movements and this gives high risk. There is a buy signal from a pivot bottom found 10 days ago.)
Trading Expectations (RIVN) For The Trading Day Of Tuesday 1st
For the trading day on Tuesday, 1st we expect Rivian Automotive, Inc. to open at $27.34, and during the day (based on 14 day Average True Range), to move between $25.94 and $29.34, which gives a possible trading interval of +/-$1.70 (+/-6.16%) up or down from last closing price. If Rivian Automotive, Inc. takes out the full calculated possible swing range there will be an estimated 12.32% move between the lowest and the highest trading price during the day.
With no resistance above and support from accumulated volume @ $25.81, some $1.83 (6.62%) from the current price of $27.64, our system finds the risk reward attractive.
Insiders are very negative selling more shares than they are buying in Rivian Automotive
In the last 100 trades there were 893.06 thousand shares bought and 31.83 million shares sold. The last trade was made 12 days ago by Thomas-graham Pamela who bough 1.33 thousand shares. In general the insiders are selling more stocks than they buy. There can be a variety of reasons for this, but in general it can be considered as a negative signal.
Is Rivian Automotive, Inc. stock A Buy?
Several short-term signals, along with a general good trend, are positive and we conclude that the current level may hold a buying opportunity as there is a fair chance for Rivian Automotive stock to perform well in the short-term.
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