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- 1 Rivian Automotive Inc (NASDAQ: RIVN) reported Q4 revenue of $663 million lower than the estimate of $724 million
- 2 Rivian gave delivery guidance of 2023 that fell short of Wall street expectation
- 3 Rivian (RIVN) stock price down by 18.34% on the intraday and closed near to the 52 week EMA
Rivian Automotive Inc (NASDAQ: RIVN) released the Q4 results on 28 February 2023 which were quite surprising because the company had succeeded to beat the earnings estimate by 11.79% (estimated -1.96 vs actual -1.73 ) but they lacked on the revenue front by 8.42% (estimated $724M vs actual $663M). The company also announced that it expects to deliver 50,000 vehicles this year which is below the expectation of Wall Street of 60,000 vehicles because of risk and uncertainties associated with the supply chain.
Rivian Automotive Inc (NASDAQ: RIVN) stock prices are trading with bearish cues and bears are trying to drag the prices below the 52 week low to disturb the market sentiment. However, the short sellers need to be careful because prices are near the important demand zone. In the previous session NASDAQ: RIVN stock price closed at $18.34 with the intraday loss of 18.34%
Will Rivian stock price rebound from the 52 week low?
Rivian Automotive Inc (NASDAQ: RIVN) stock prices are in a downtrend and slipping down by forming a bearish pattern which shows that investors are concerned about the vehicle production issues going on inside the company. Recently, the company announced that it expects to deliver 50,000 vehicles this year which is below the expectation of Wall Street of 60,000 vehicles.
In the mid of January, Rivian stock price took U-turn form the 52 week low and gained some positive momentum which has created a hope for the bullish trend reversal and prices rallied 45% in the short period of time. Later, The bulls had attempted to push the price above the 50 day EMA but unfortunately it got rejected from the higher levels and slowly it began to lose all its previous gains. Therefore, On the higher side $22.00 will act as an immediate hurdle for the bulls and till prices are trading below $22.00 level it is expected to remain weak and trade with the bearish bias.
On the other hand, Rivian stock investors are keeping an eye on the 52 week low at $15.28 which is the last hope for the bullish traders and if the prices drops below the support level then bears might try to drag it further down toward $12.00. However, if the overall market sentiment turned bullish then probability of short covering will increase in the favor of bulls. The technical indicators of the Rivian stock like MACD have generated a negative crossover indicating bearishness to continue for some more time whereas the RSI curve at 36 sloping down denotes oversold zone which may trigger a relief rally in coming days.
Summary
Rivian Automotive Inc (NASDAQ: RIVN) stock prices fell sharply after posting disappointing Q4 revenue and the company has also cut down the targets of vehicle production which is raising concern for the future outlook of the company. However, the technical analysis shows that the prices are near the 52 week low and may see a short term bounce back to trap the short sellers.
Technical levels
Resistance levels : $20.00 and $22.00
Support levels : $15.29 and $12.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
