Rivian (NASDAQ: RIVN) stock price made a new monthly high yesterday. The stock of the EV manufacturer tumbled right after the market opened on Wednesday. The shares are now down 2.8% and were changing hands at $22.7 till press time.
The recent decline in US stocks can be attributed to the rise in treasury bonds and the weak PMI data from Europe and China. The Nasdaq100 slid 0.3% while the S&P500 slid fell 0.5% at market open. Rivian stock also showed a negative sentiment and traded 18% below its yearly high.
Rivian Q2 Results Beats Analyst Expectations
On 8th August, Rivian announced their better-than-expected Q2 earnings. After not being profitable for a while, the carmaker announced a $1.12 billion in revenue. The EV manufacturer produced 23,387 vehicles in the first half of 2023 and is on track to post its first gross profit in 2024.
Rivian is under pressure from other manufacturers to cut prices for EVs. Rivan is already in a cost-cutting mode, just like other manufacturers. Any further price cuts by Rivian will likely increase its losses. The Rivian stock price stands 16% below its yearly high.
Rivian Stock Price Forecast
The following chart for NASDAQ: RIVN shows the price confirming the breakout from the downward trendline. The price had a strong rebound from $19.5 in August due to the confluence of the trendline and the 200-day MA. The stock then rallied 18% to its new monthly highs.
Rivian stock price forecast can flip bullish if the bulls break above the $23.3 resistance level. In this case, I expect a rally towards the yearly high of $28. However, this outlook is expected to turn bearish if the price breaks below the $19.5 support level.
I’ll keep posting my updated Rivian analysis and my personal trade setups on Twitter, where you are welcome to follow me.
