Cup Established. Wait on the Handle.

Hi Traders,

RIVN formed a CUP on the 240 chart. I anticipate the handle will close the small gap around the $19.80 area, which is also a trend support zone. Once price is in this area, consider a bullish position targeting the $24 trend resistance. Once RIVN breaks trend resistance, target $34 which is the 1:1 ratio from the depth of the cup pattern.

Entry: $20
T1: $24
T2: $34
SL: $18

Happy Trading!

Comment:

Almost there.

Comment:

RIVN is in the entry zone at a key level of support. Targeting the 1/19 $20C and the 19P

Comment:

There is a bearish order block around the $19 area as denoted in the chart below. Bearish traders sold RIVN in DEC 23, but RIVN didn't decline further in price. Instead, it moved up, which indicates Bearish traders exhausted their selling power and will likely be eager to close their positions by buying RIVN at this price point, thereby constituting a bullish demand zone and potential price reversal. It is also at the 61% Fibonacci level, which is typically where prices rebound on assets.

Trade closed manually:

Cup and Handle Pattern invalid now as RIVN has closed below the 78% FIB level.