Rivian extends losses - Analysis - 12-05-2022

Rivian's stock (RIVN) kept falling in the intraday levels after the electric vehicles automakers reported a loss of $1.77 per share, and an operation loss of $1.6 billion on sales of $95 billion, with Wall Street expecting a loss of $1.45 per share, and an operating loss of $1.5 billion on sales of $131 million.

However, the company's future forecasts remain unchanged, expecting to deliver 25 thousand vehicles throughout 2022, while producing 2,552 trucks this quarter and delivering 1,227, up from 909 trucks in the fourth quarter.

The company was further pressured by Ford's decision to sell 8 million shares of Rivian's in the open market at $26.80 per share, collecting $214.4 million.

Technically, the main downward trend still dominates the stock's short-term movements, with negative signals from the RSI despite settling at oversold regions, and with negative pressure from the 50-day SMA, marking a loss of 9.61%, and settling at 20.60, with trading volumes surpassing 53 million shares, compared to a 10-session average of 28.2 million shares. 

Therefore we expect more losses for the stock, targeting the support of 7.60, provided the resistance of 33.46 holds its ground. 

Expected trend for today: Bearish.