Rivian stock Price (NASDAQ: RIVN) fell 27% in the August month and formed a bearish pattern. It broke down the crucial support of $22.00 which hurt the sentiment of its long-term investors.
RIVN stock dropped below the 200-day and 50-day EMA showcases the trend has again reversed downward. The sellers seem more active as compared to buyers so more downside is possible.
Rivian Automotive Inc. shares performed well in the previous month. It showed a steep rally of 70% (approx.) and created a positive hope for long-term investors.
At the end of July, Buyers tried to break out of the $28.00 hurdle to boost the confidence of investors. But, sellers got active and profit booking triggers from the higher levels.
The momentum in RIVN stock halted near $28.00 and prices reverted in a downward direction. Slowly prices declined by forming lower lows and eroded 50% of the previous gains.
Rivian stock price closed the previous session at $20.08 with an intraday decline of -5.19%. The market capitalization stands at $19.00 Billion.
Rivian Stock Witnessed Profit Booking
Rivian stock price (NASDAQ: RIVN) is in a correction phase. However, the stock prices are near to crucial support. So, it will be interesting to see how prices react in the coming sessions.
Rivian Automotive Inc. released the previous quarterly earnings on August 8, 2023. It reported an EPS of -1.08 and revenue of $1.121 Billion. Rivian beats the EPS estimate by 24.35% and the revenue estimate by 10.25%.
Despite that, stock prices reacted negatively and continued the downfall. The technical analysis suggests that RIVN stock is in a bearish grip so the probability of upward reversal is low.
RIVN Stock: Sellers dominance is visible
RIVN stock price fell for 4 consecutive weeks showing the dominance of sellers. The broader market indices are also turning bearish. It might negatively impact the prices of Rivian shares in the coming few weeks.
The MACD generates a negative crossover and the curve sloping down indicates bearishness. The RSI at 36 denotes weakness but is near the oversold territory. So a relief rally may trigger anytime from the lower levels.
Conclusion
Rivian stock price (NASDAQ: RIVN) corrected 27% (approx.) from the recent swing high. The technical analysis suggests the trend of RIVN stock has again reversed. So 10% to 15% more downside is possible for current levels.
Technical levels
- Resistance levels: $25.00 and $28.00
- Support levels: $18.00 and $16.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/08/23/rivian-stock-fell-27-is-more-downside-pending-in-rivn-stock/