Trading Strategies for Rivian Stock Before And After Q4 Earnings

Rivian Automotive, Inc (NASDAQ: RIVN) was trading about 3% lower Wednesday as the company heads into its first-quarter earnings print after the market close.

Analysts expect the company to report EPS of negative $1.32 on revenues of $1.262 billion for the quarter ending Dec. 31.

Last week, Barclays analyst Dan Levy downgraded Rivian from Overweight to Equal-Weight and lowered a price target from $25 to $16. Read More Here...

When Rivian printed its third-quarter earnings report on Nov. 7, the stock was highly volatile the following day, gapping up about 8.5% before falling to close about 2.41% lower.

For that quarter, Rivian reported earnings per share of negative $1.19, beating a Street estimate of a loss of $1.32 per share. The company also posted a top-line beat, reporting revenues of $1.337 billion, compared to the $1.327-billion consensus estimate.

From a technical perspective, Rivian looks neutral heading into the event, forming an inverted hammer candlestick but rejecting the eight-day exponential moving average (EMA). Of course, holding a position in a stock over earnings can be akin to gambling, as stocks can rise following an earnings miss and fall after reporting a beat.

Read Next: Rivian CEO RJ Scaringe Zeroes In On $48K As 'Sweet Spot' For R2 Pricing

Trending: Fed Minutes Stress Inflation Vigilance, Push Back Earlier Rate Cut Moves: Officials Flag Commercial Real Estate Risks

Bullish On Rivian? Traders and Investors looking to play the possible upside in Rivian stock but with diversification may choose to take a position in the Spear Alpha ETF (NASDAQ: SPRX). SPRX is an actively managed fund offering investors the opportunity to achieve more than passive tracking of the broader market. Some of the fund's most popular holdings include NVIDIA Corporation, weighted at 10.48%, Advanced Micro Devices, Inc (NASDAQ: AMD) weighted at 9.04% and Snowflake, Inc (NYSE: SNOW), weighted at 8.87%.

SPRX invests in companies capitalizing on emerging trends in industrial technology, aiming to uncover undervalued opportunities within various value chains aligned with themes such as enterprise digitalization, automation, AI, environmental focus, photonics, additive manufacturing, and space exploration. The ETF, traded on the Nasdaq exchange, targets long-term capital growth and is up about 64% over the last twelve months and about 4.2% year-to-date.

Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.

The Rivian Chart: Rivian has been trading mostly sideways since Jan. 17, but since Feb. 5, the stock has made a series of higher lows on the daily chart. On Wednesday, Rivian was working to form an inverted hammer candlestick, which could signal the local bottom has occurred and the stock may bounce on Thursday.

Rivian’s relative strength index (RSI) has been making a series of higher highs and higher lows, indicating positive momentum in the stock is increasing. Bullish traders want to see Rivian receive a bullish reaction to its earnings print and for the stock to form a higher high above the Feb. 16 high of $16.73, which would throw the stock into a confirmed uptrend. Bearish traders want to see Rivian continue to reject the 21-day EMA and for the stock to drop under the $15.27 mark on Thursday, which would confirm a new downtrend. Rivian has resistance above at $15.80 and at $18.09 and support below at $13.81 and at $11.68.

Photo by Wes Hicks on Unsplash

Get insight into trading platforms. Compare the best online stock brokerages.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.