Stock of the day: Rivian Automotive

In today’s Stock of the Day, let’s take a closer look at Rivian Automotive, which presents a fascinating long-term technical structure. A glance at the weekly chart reveals a well-defined symmetric triangle pattern, stretching back as far as 2023. The formation is marked by blue converging trendlines, indicating a period of tightening consolidation after years of volatility.

As of now, the price is trapped within this triangle, steadily coiling as volatility diminishes. This state of compression suggests that a major breakout is imminent—this kind of price action cannot last forever.

Interestingly, in the first few months of 2025, the price repeatedly tested the lower boundary of the triangle but managed to defend it successfully. That defense has since led to a modest rebound, with the price now gravitating toward the upper boundary of the pattern.

How to Trade This Triangle?

The rules of engagement are relatively straightforward:

• A breakout above the upper blue line would signal the start of a new bullish wave and generate a buy signal.

• A breakdown below the lower blue line would confirm bearish dominance and trigger a sell signal.

At the moment, the recent defense of support gives some confidence to the buyers. However, unless a strong breakout to the upside materializes soon, the triangle’s structure could continue to favor a downside break, especially if momentum fails to carry the price above resistance.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-rivian-automotive