- Rivian stock managed to close in the green on Thursday.
- Rivian is a massive outperformer after another growth stock sell-off.
- RIVN shares look set for more losses as sector loses investor interest.
Rivian (RIVN) closed up ever so small on Thursday in a move that needs a second glance. The shocking CPI number led to a growth and meme stock sell-off, but somehow Rivian managed to buck the trend. It closed at $64.72, up a meagre but significant 0.29% on the day.
Rivian Stock News
Rivian is likely to see more losses purely on yet more hawkish pricing after the CPI report. That report showed inflation branching out into every sector of the economy, which means inflation is likely to become more self-sustaining as workers demand wage increases that in turn fuel more price rises. Rivian is clearly high growth and at the early stage of its development. This is unfortunately not a good time to be a high growth stock as investors naturally shun the sector in a time of rising yields.
Yesterday the Biden administration announced a five-year, $5 billion investment plan for an electic vehicle charging network. This may have led to some hope for Rivian, but we see limited read across. The nation needs a more widespread charging network. This is not so much a sector catalyst as a sector necessity. There can be no future for EVs without a widespread charging infrastructure.
Rivian Stock Forecast
The $50 low from January remains the psychological as well as technical support. Recently, from the 4-hour chart, we can see some decent volume around current levels at $64. This provides some measure of support and may have been another reason for the outperformance on Thursday. However, in this case, the macroeconomic backdrop will likely prove too powerful, so expect more losses.
Below $56 is the volume shelf, and a move to $50 with some speed is then likely. $50 will hold just below in all likelihood, so be careful here. $56 also represents the last significant low in the small recovery uptrend in place.
Rivian (RIVN) chart, daily
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