Last Chance to Buy Rivian Before Major Bull Run

This is a daily chart of EV manufacturer Rivian Automotive ( RIVN ).

Price continues to consolidate as the moving averages converge.

On the right-hand side is the indicator called the Visible Range Volume Profile (VRVP). This indicator provides a vertical histogram of volume. The volume bars help identify the price ranges where most volume has occurred, which helps traders identify areas of support and resistance.

The indicator provides a red line to show the exact price level with the greatest trading volume and therefore the strongest point of support or resistance. When price comes down, as in the case of Rivian, and then forms a red line on the VRVP, it often becomes an important support level. An extremely bullish perspective might even go so far as to surmise that this area of support is the bottom for Rivian and that a major bull run is about to unfold with this red line as its support area.

From a Wyckoff analysis, one might conclude that accumulation is occurring. According to that analysis, price can retest the low right before the breakout phase.

Also, note Rivian's outperformance in the month of June. Even as inflation and commodities were soaring, major indices were gapping down, and the Fed was accelerating hiking rates, Rivian continued to consolidate, trading in a tight range and making higher lows (see below chart).

Rivian's outperformance of the broader index, after such a prolonged decline, is probably an early sign of a trend reversal and likely reflects that smart money is accumulating. A good chartist would know that inflation is cooling because commodities are now being resisted by the lines that once supported their upward trend. Necessarily, aggressive interest rate hike expectations will soon cool, too. The market is always forward-looking. By the time the Fed says that inflation is cooling and makes a pivot to being less aggressive, smart money will already be fully in the market.

Therefore, there is high confidence that Rivian may soon break out to the upside (probably in July). Don't let a temporary oscillation to the downside fool you. Nonetheless, as always, have your stop losses in place as the market can act irrationally longer than you can stay solvent. Never be unwilling to accept that you're wrong. Trading isn't about being right, it's about preserving and growing capital.

Trade closed manually:

Closed position manually to let the market cool down a bit.

Trade active:

Added my position back yesterday because my charting said it was safe from a risk-to-reward perspective. Let's see if I can have another successful swing trade.

Trade active:

This is one of the few assets that I'm still holding long in this crazy market. The profits keep printing. I am using a trailing stop loss, which absent major slippage, will guarantee profit. To save on taxes what I do is I just pull out my cost basis when the stop loss triggers and I leave my profit as shares. Doing this is pretty much a risk-free investment. The money that stays invested was the profit so its impossible for my portfolio to be any worse off than before the original trade. Always remember that the best trading strategy is that which combines trading with investing. Trading is about making a short-term gain, whereas investing is about building wealth over the long term. Keeping money invested is what builds the most wealth over time. So I combine the two (trading and investing) by building up investments via taking profit in the form of retaining shares. Doing this lets you report mostly only losses from unprofitable trades in your taxes, rather than profits from winning trades!

Trade closed: target reached:

Closed on Sept. 20th because overall market was breaking down. Held from August 31st to Sept. 20th.