$RIVN - A lot of classical technical analysis nuggets
Another trendy asset. Of course I had to take a look at through the lens of my favorite timeframes (W-M-3M)
I did not find a satisfactory swing trade in these time frames from a risk to reward perspective.
I did find though a lot of classical technical analysis nuggets worth noting for savvy technical analysis learners out there.
They are pretty much ostensible in the chart with comments laid.
Regarding my bias and analysis of the current stat of the market:
1. Market structure:
Market just broke out its downward sloping trendline. Theory and logic entails that what follows is an accumulation phase, a ranging market preceding.
In ranging markets we stack the odds on our side in case we buy at support and sell at resistance. Provided of course we get the triggers.
2. What is support and resistance here:
Price volume divergence as highlighted, preceded by a RSI bullish divergence + trendline breakout + wide bullish candle at support back in July advocate that support / demand are in the $20/30 range.
3. Trigger?
Already past us. It emerged back in July. Right now judging by the logical place where we ought to place our stop loss (below support with enough buffer) and the logical place where we ought to place our take profit (at resistance - purple area above), then a swing trade does not make sense right now from a risk to reward perspective.
Of course you can always, provided you know what you are doing, rely on the strong bullish signal we are getting from this support area and buy to hold for a long long time until price reaches its ATH for instance (where there is an ostensible supply area).
A lot of scenarios are possible. Bear in mind though, that if you are bullish here, there are a lot of overhead obstacles.
Just manage risk at all times, at all costs. This must override any other principle.
I did not find a satisfactory swing trade in these time frames from a risk to reward perspective.
I did find though a lot of classical technical analysis nuggets worth noting for savvy technical analysis learners out there.
They are pretty much ostensible in the chart with comments laid.
Regarding my bias and analysis of the current stat of the market:
1. Market structure:
Market just broke out its downward sloping trendline. Theory and logic entails that what follows is an accumulation phase, a ranging market preceding.
In ranging markets we stack the odds on our side in case we buy at support and sell at resistance. Provided of course we get the triggers.
2. What is support and resistance here:
Price volume divergence as highlighted, preceded by a RSI bullish divergence + trendline breakout + wide bullish candle at support back in July advocate that support / demand are in the $20/30 range.
3. Trigger?
Already past us. It emerged back in July. Right now judging by the logical place where we ought to place our stop loss (below support with enough buffer) and the logical place where we ought to place our take profit (at resistance - purple area above), then a swing trade does not make sense right now from a risk to reward perspective.
Of course you can always, provided you know what you are doing, rely on the strong bullish signal we are getting from this support area and buy to hold for a long long time until price reaches its ATH for instance (where there is an ostensible supply area).
A lot of scenarios are possible. Bear in mind though, that if you are bullish here, there are a lot of overhead obstacles.
Just manage risk at all times, at all costs. This must override any other principle.