Welcome to the (new) Pit Report!
Each week, I’ll give an overview of a stock and Licia Leslie will follow that up with a chart analysis the next day. Andrew Giovinazzi will then finish out the week with a volatility breakdown.
Have a stock YOU want us to review? Email my team here. – Mark
Hey Traders,
Licia Leslie here in the Pit Report today.
Just after its IPO in November 2021, RIVN trade a high just shy of $180.
It proceeded to trade straight down to $20 by May 2022.
Recovered about $10 and wallowed between $31 and $41 for about six months.
Then it tanked again in late December 2022 bottoming out on Jan 19, 2023 at $15.28.
It has since rallied and could quite possibly have formed a rounded bottom.
At the moment it seems to be creating a bull flag.
If not a bull flag, definitely a consolidation of some pretty large candles.
Generally a consolidation is a pause or a break gearing up for the next leg move in the continuing direction.
In this case that direction is higher.
On the left side, the volume profile is wide open to the upside.
If RIVN can close over $20, the next resistance will be the 50 day moving average at $22.36 and above there it will come in at $25.
With that volume profile setup, RIVN could try and make a run for the 200 day moving average up at $29.74.
This will not happen overnight, but this stock is definitely a mover.
Earnings are scheduled for February 28th.
Trade accordingly.
Thanks For Reading…See You Next Tuesday,
