How To Trade Rivian Stock Before And After Q3 Earnings

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Rivian Automotive, Inc RIVN is set to print its third-quarter financial results after the market closes Wednesday. The stock was plunging over 12% heading into the event.

When the American electric vehicle maker printed its second-quarter results on Aug. 11, the stock closed flat the following day after a small intraday rally before sinking 21% over the subsequent 14 trading days.

For the second quarter, Rivian reported an earnings loss of $1.62 per share on revenue of $364 million. The company beat the EPS estimate of a $1.63 loss and revenues of $337.52 million.

For the third quarter, analysts estimate Rivian will print a loss of $1.82 per share on revenues of $551.57 million.

Traders and investors will be watching closely to see whether Rivian has increased its deliveries during the quarter. Rivian said in August it planned to add a second shift to its vehicle production lines toward the end of the quarter.

From a technical analysis perspective, Rivian’s stock looks set to trade lower over the coming days because the stock has settled into a strong downtrend pattern on the daily chart. It should be noted that holding stocks or options over an earnings print is akin to gambling because stocks can react bullishly to an earnings miss and bearishly to an earnings beat.

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The Rivian Chart: Rivian started to trade in a fairly consistent downtrend on Sept. 15, with the most recent lower high formed on Nov. 1 at $36.45 and the most recent confirmed lower low printed at the $29.45 mark on Oct. 24. On Wednesday, Rivian fell below that lower low but hasn’t shown signs yet that the next bottom is in.

  • If Rivian closes the trading day near its low-of-day price, the stock will print a bearish Marubozu candlestick, which could indicate lower prices will come again on Thursday. If the stock bounces up to close the day with a substantial lower wick, Rivian will print a hammer candlestick, which could indicate the next low has occurred and the stock will bounce.
  • Rivian’s plunge on Wednesday was taking place on higher-than-average volume, which indicates the bears are in control. If Rivian doesn’t have a big reaction to its earnings print, the stock may trade sideways for a period of time, forming one or more inside bars.
  • Rivian has resistance above at $29.32 and $34.28 and support below at $24.28 and $21.

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Photo courtesy of Rivian.