Rivian has been in the dumps ever since it cratered from its IPO price, and today just under a 90% discount it is looking to start it's recovery off the back of 2 successful earnings reports while inching steadily towards a positive EPS.
I drew a symmetrical triangle (its a little off symmetry but its close enough) and we broke out of it yesterday and today closed firmly above the downward trendline.
One of the things I look at is the bottoming periods of the triangle, in this case each bottom was higher than the previous (slightly) this is required for a triangle breakout, but it is important to see that 4 missed earnings did not result in the stock making a lower low, also it is important to see that the liberation day market sell-off did not make a lower low, despite the headwinds the lows kept creeping up. To me this indicates that there is solid support and accumulation.
With EV hype picking up with TSLA I think we may see RIVN take off among investors who don't feel like backing the Musk project that want to capture a similar market.
Based just on the the price to sales ratio, I feel that Rivian is undervalued compared to its competitors.
Tesla Price to Sales: 50
Lucid Price to Sales: 35
Rivian Price to Sales: 15
This comes together to make me confident in Rivian being a solid bet as the market begins to turn bullish in the summer months and as the SNP500 moves on to making new highs in the coming months.
Just my opinions.
Good Luck & Happy Trading
I drew a symmetrical triangle (its a little off symmetry but its close enough) and we broke out of it yesterday and today closed firmly above the downward trendline.
One of the things I look at is the bottoming periods of the triangle, in this case each bottom was higher than the previous (slightly) this is required for a triangle breakout, but it is important to see that 4 missed earnings did not result in the stock making a lower low, also it is important to see that the liberation day market sell-off did not make a lower low, despite the headwinds the lows kept creeping up. To me this indicates that there is solid support and accumulation.
With EV hype picking up with TSLA I think we may see RIVN take off among investors who don't feel like backing the Musk project that want to capture a similar market.
Based just on the the price to sales ratio, I feel that Rivian is undervalued compared to its competitors.
Tesla Price to Sales: 50
Lucid Price to Sales: 35
Rivian Price to Sales: 15
This comes together to make me confident in Rivian being a solid bet as the market begins to turn bullish in the summer months and as the SNP500 moves on to making new highs in the coming months.
Just my opinions.
Good Luck & Happy Trading
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.