Rivian Stock jumped 10%; RIVN Stock Price prepares for $20.00?

• Rivian Stock Price (NASDAQ: RIVN) jumped 10% in the single day and showed signs of range expansion.
• RIVN Stock Price consolidating in the range between $12.00 to $16.00.
• Rivian Automotive Stock Price holds the 50 day EMA and is trying to reverse the short term trend.

Rivian Stock Price (NASDAQ: RIVN) jumped 10% on a single day and attempted to break out of the 3 months consolidation. Well, the confirmation of the breakout will be visible in the coming few sessions. 

RIVN Stock Price succeeded to climb above the 50 day EMA shows the signs of the short term bullish trend reversal. However, the 200 day EMA is placed much higher than the current price indicates that the positional trend is still in the downward direction. 

From the past 3 months, Rivian Automotive Stock Price is consolidating in the wide range between $12.00 to $16.00 and showed signs of base formation. The recent up-move looks powerful and the probability of breakout is high. 

The volume spikes in the RIVN Stock is quite normal denotes speculators are also active and up move might end up as a trap. The broader market index Dow Jones and Nasdaq is performing well which may positively impact the prices of auto sector stocks. 

Rivian Stock Price closed the previous session at $16.01 with an intraday rise of 9.36%. The market capitalization stands at $15.04 Billion. 

Will Rivian Stock break out of the higher range?

Rivian Stock Price has not performed well in the past few months and disappointed the expectation of the long term investors. In the end of April, RIVN Stock Price hit a 52 week low at $11.68 and showed a minor recovery. But it lacked momentum near $16.00 and began to consolidate. 

If the buyers sustain the price above the 50 day EMA for some more time then the probability of the breakout will substantially increase. If the buyers succeed to break the higher range then the price might begin the journey to reach $22.00. 

On the other hand, if the RIVN Stock Price faced rejection from $16.00 then the bear will try to pull it back to $12.00 level. 

RIVN Stock Price Analysis on Weekly Time Frame

RIVN Stock Price formed a bullish engulfing on a weekly time frame and rises 18% in the current week. The next phase of the rally will begin when buyers are able to hold the price above the $16.00 level. 

The MACD curve is on the way to generate a positive crossover which will increase the confidence of investors. The RSI curve at 61 rising upward denotes the strength of bulls and more room for upside is open. 

Conclusion

Rivian Stock Price (NASDAQ: RIVN) jumped 10% and tried to break out of the $16.00 hurdle level. The technical analysis suggests, RIVN stock Price is in the initial phase of trend reversal and probability of the breakout is high. 

Technical levels

Resistance levels: $20.00 and $22.00

Support levels: $13.00 and $12.00

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.