Oversold Into Earnings: Rivian’s Bounce Setup And 3 More Charts

Hello everybody, Drew Dosek here with Verified Investing. Today we've got a few charts to go over and stocks to take a look at some movers. Some stocks are right there into some support. Others you can prep for with a little bit of work and some reminders set on your charts that we're going to go over here in just a moment. Let's check out uh first up Rivian on the charts and that does have earnings coming up not too far away but we see what's been happening with uh Rivian most recently since August nearly straight down on the charts from $17 now trading at $13.75. Now look at this long-term parallel channel guys. This parallel channel started back in April of 2024 has hit the bottom once, twice, three times, four times, five times. This is now the sixth time. Now, this is somewhat of a 50/50. Slightly more favoring a break and a pierce through of this area. But guys, we are very much oversold about to cross the 30 point threshold on the daily RSI currently at 31.85. So, what I think is going to happen in this particular play with Rivian even though we're due for a bounce right now. So, we are basically on that warning track. I'm anticipating a slight pierce with price potentially coming down and touching this $13.51 marker. Now, let me show you the earnings that are going to be coming up so that you can be aware of that as well. Because whenever price sells steep into earnings, any sort of good news coming on earnings, which is going to be on October 29th, could likely lift price up and give it a nice bounce. Now, where could bounce uh a bounce take us on this chart? Let me show you. So, I'll I'll grab uh my trend lines, go back to previous pivots, and I'm going to draw a trend line over to that pivot, and then connect over the very next pivot. You can see how price action, it pierces this area, and even pierces this, gets a bounce, uh pierces this level, but ends up going up. That's one of the near-term destinations. And I'm going to clean this up so you can see it just a little bit clearer. But you see how I have somewhat of an X marks the spot right here around 1572. That's where I anticipate if Rivian does catch a bounce down here on the bottom of this parallel currently at 1374 or down here to 1351. I anticipate a potential bounce could take us all the way up here to the 1553 to 1575 range right where these trend lines start converging. That's a great opportunity. As you see here, Rivian has been in that parallel for quite a while and has been uh producing reliable bounces off the bottom end of that range for literally over two years. So, it's interesting play on the horizon. One that I'm going to be paying attention to in the coming days. Uh next up, we got Shark Ninja. Now, who would have known, guys, SN as a far as a ticker. Look at this push up today. 3.88% 88% now running into a double top all-time high right here on the chart near $194. So great push up here on Shark Ninja. You can already see I've got this inclining parallel illustrated for you. Now I'm also going to show you the daily RSI. Look at this divergence, guys. Higher RSI back here when we were lower in price on the chart and yet we have um slightly and continually declined with that RSI all the while price is right back up here. So what that illustrates is that's a divergence in the RSI and price action saying that even though price is going up, the buying support of the price going up is actually decreasing. So I anticipate should we pierce the all-time highs, we may not go that much far past and start seeing resistance right up here at the $200 mark. Makes sense, right? $199.55 is the top of the parallel. That psychological whole round number of $200 likely will bring in some profit taking and push price back down here into the 184 185 range on the chart of Shark Ninja. Uh next up onto NT0 onto innovation. Now onto they've got a really good backlog as you can see here onto's $ 1.1 billion backlog in electronic technology. Um can they turn that into a profit? If we look here and back out onto the weekly time frame, we're certainly not at the highs and we've registered a weekly topping tail back in June. Now, since June, we've not gotten price above. Doesn't mean we can't get back above. But this weekly topping tail illustrates how long of an impact on a chart it can have where on brand new highs are just so hard to accomplish unless we make several attempts to get higher. And you can see I've illustrated that with this declining trend line. We made one attempt now made third. Now uh the second which in essence is the third hit on that declining trend line. The next attempt being the fourth hit will be a 50/50 shot of breaking through. It's just a matter of where that support comes in. Now you can see I've got an inclining trend line that is connected over to this pivot low on September 3rd. Now this low back here was July 29th connected over to September 3rd. And notice how price breaks that area, but it never um extends itself uh away from that trend line. In fact, each one of those days, price action was just like clinging and hanging on to that trend line and thus got a bounce moving up on the chart. And you can see today we're getting a bounce at the low all because of that inclining trend line. Interesting little shelf of support. Now, if this gives way, you can see I've got a fan uh double layer of support underneath for onto. First up will be the bottom of this parallel 25641 and then secondly at 24730. In essence around that 250 mark would have a solid level of support one with a high probability opportunity to bust through this uh declining trend line for that then fourth hit and third attempt to get back above uh that declining trend line. So keep this uh range on your radar for onto with that backlog. If price gets down there, that should be a high probability chance of a bounce. Uh, next up, SMCI. I want to put this on your radar. We've had a great bounce on SMCI since the uh, end of June of this year. Is illustrated by this inclining trend line, really marching up the charts very nicely. And since we did break above this declining parallel channel. Uh, but now the last four trading days has all come about to change the course of the direction from that July low. As you see that trend line has been violated. Now, this is one day underneath. So, keep that on your radar. A second day pushing down lower would confirm that SMCI's near-term trend has broken and the likelihood for more downside would come. It won't go straight down and it likely will go back up and retest that trend line that it had just broken from. But, I want to at least put that on your radar as I do see a very solid level of support should you be in the trade now, exit, but want to get back in. You notice that we've got a gap fill right here. Gap fill is at uh $36.85 just underneath this fib 382 retrace. If we come having price continue moving straight down on the chart in the coming days, we're likely due for a near-term bounce, one that can then retest uh that trend line. So, that could be an interesting short-term swing trade opportunity, but you got to be paying attention to it over the next several days as SMCI does move quickly when it does have momentum. All right, guys. Uh that wraps up today's uh videos on ProCharts. Thanks so much for tuning in and watching. Again, my name here is Drew Dosk with Verified Investing. We've got a lot of great free content here available for you to view, learn, find your next trade setup, and then make more successful trades. Thanks so much for making time to have this video part of your day. I look forward to putting some more together in the future. Until then, we'll be right here on the charts waiting for you. Take care, folks.