Rivian Automotive ( RIVN) is seeing more active turnover (volume) Friday as traders may be encouraged by the company's announcement of a hook-up with Mercedes-Benz ( DMLRY) . Let's check out the charts and indicators.
In our last review of RIVN on August 11 we were looking at mixed charts. Today the charts are looking a little more positive with a higher low in late August. Prices are above the rising 50-day moving average line. The 200-day moving average line is bearish.
The On-Balance-Volume (OBV) line continues to show improvement from a May nadir. The Moving Average Convergence Divergence (MACD) oscillator is hugging the zero line and could turn bullish if prices rally from here.
In this weekly Japanese candlestick chart of RIVN, below, I see a neutral-looking chart. Lots of small spinning tops. The weekly OBV line shows some slight improvement.
In this daily Point and Figure chart of RIVN, below, we can see a potential upside price target in the $49 area.
Bottom line strategy: RIVN needs more sideways price action to entice me to recommend the long side.
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There are plenty of stocks that look like value plays but aren't as the market continues to drag more share prices down.
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