Rivian volume pattern shows signs of accumulation
Source: www.tradingview.com
Rivian shares are responding well to news out of the company. The electric vehicle maker beat Wall Street quarterly delivery expectations. On Monday, the company reported 12,640 deliveries for Q2, which is 59% higher than Q1 and better than the 11,000 expected by analysts.
Rivian has also reiterated its annual production target of 50,000 for the year. The company produced approximately 23,400 vehicles through Q2.
Other positive news for the EV maker is that Amazon (AMZN.us) is taking its technology to Europe. I.e., Rivian is set to broaden its delivery operations for the battery-electric van it produces exclusively for Amazon.com. This expansion will mark the first time the electric vehicle manufacturer will be shipping its commercial products beyond the borders of the United States, venturing into the European market.
It will roll out 300 plug-in delivery vans in the next few weeks across Munich, Berlin, and Düsseldorf. Moreover, Amazon has an order for 100,000 vans to be delivered by the end of the decade.
Rivian hit a low of $11.68 in late April. Since then, the company has appreciated by close to 75% and is currently trading at $20.43. Importantly, the daily chart's On Balance Volume indicator has moved above its red declining trendline, which indicates that Rivian shares have been accumulated since late June.
If the company's candlesticks chart a higher trough followed by a higher peak, this will be regarded as a further bullish development.
Image by Paul Brennan from Pixabay
Russell Shor
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.
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