Trading Strategies For Rivian Stock Before And After Q2 Earnings

Rivian Automotive, Inc RIVN was trading higher on Tuesday as the company heads into its second-quarter earnings print after the market close.

Analysts expect the company to report EPS of negative $1.41 on revenues of $978.88 million for the quarter ending June 30.

On Tuesday, Truist Securities analyst Jordan Levy maintained a Buy rating on Rivian and raised the price target from $28 to $30. The new price target suggests about 14% upside for the stock. Cantor Fitzgerald analyst Andres Sheppard downgraded the stock from Overweight to Neutral and bumped the price target from $27 to $29.

When Rivian printed its first-quarter earnings report on May 9, the stock ripped over 13% higher at one point the following day before closing that trading session flat.

For that quarter, Rivian reported a loss of $1.25 per share, which came in ahead of Street estimates of a loss of $1.59 per share. The company also posted a top-line beat, reporting revenues of $661 million against a $652-million consensus estimate.

From a technical perspective, Rivian looks neutral heading into the event, trading in a bearish inside bar pattern but above the 200-day simple moving average (SMA). Of course, holding a position in a stock over earnings can be akin to gambling, as stocks can rise following an earnings miss and fall after reporting a beat.

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The Rivian Chart: Rivian reversed into a downtrend on July 27 and has since printed a series of lower highs and lower lows. The most recent lower high was formed on Aug. 3 at $21.07 and the most recent lower low was printed at the $23.63 mark on Monday.

• On Tuesday, Rivian was trading in an inside bar, which leans bearish because the stock was trading lower before forming the pattern and is trading near the bottom of Monday’s range.
• Traders can watch for the stock to break up or down from the mother bar following the earnings print to gauge future direction.
• If Rivian suffers a bearish reaction to its earnings and falls lower, the stock may back test support at the 200-day SMA. When a stock is trading above the 200-day it’s considered to be in a bull cycle, and if Rivian can remain above the indicator, the 50-day SMA will cross above the 200-day SMA, which would cause a golden cross to form.
• If the stock receives a bullish reaction to the print and flies above the $28 mark, the downtrend will be negated and a new uptrend could be in the cards. If that occurs, a golden cross will appear on Rivian’s chart on Wednesday.
• Rivian has resistance above at $28.58 and at $32.84 and support below at $24.48 and at $21.

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Photo courtesy of Rivian.