EV maker Rivian Automotive (RIVN) was downgraded by another sell-side firm Wednesday as they see "margin risks." Let's get out some socket wrenches and take a closer look at the charts and indicators to see if the stock is all sold out at this point.
In this daily bar chart of RIVN, below, I can see some green shoots in the price movement. The shares have been in a downward trend the past year but the length of each declining phase has become shorter in terms of dollars lost and in terms of the time period being weak. The shares trade below the declining 50-day moving average line and below the declining 200-day moving average line.
The trading volume shows heavier turnover the past three to four months. Heavier volume at a potential price low suggests a possible change in ownership from weak hands to stronger hands or investors with deeper pockets.
The On-Balance-Volume (OBV) line declined to a low in March and has not made a lower low in April. The month is not over but at this point it is a glimmer of improvement. The 12-day price momentum study shows higher lows from December to March even though prices made lower lows. This is a bullish divergence as the pace of the decline is slowing. This bullish divergence can at times foreshadow an upside reversal. We'll see.