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Rivian Automotive (RIVN) Now Trades Above Golden Cross: Time to Buy?

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After reaching an important support level, Rivian Automotive, Inc. (RIVN - Free Report) could be a good stock pick from a technical perspective. RIVN recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.

A golden cross is a technical chart pattern that can signify a potential bullish breakout. It's formed from a crossover involving a security's short-term moving average breaking above a longer-term moving average, with the most common moving averages being the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.

A successful golden cross event has three stages. It first begins when a stock's price on the decline bottoms out. Then, its shorter moving average crosses above its longer moving average, triggering a positive trend reversal. The third and final phase occurs when the stock maintains its upward momentum.

A golden cross is the opposite of a death cross, another technical event that indicates bearish price movement may be on the horizon.

RIVN has rallied 46.1% over the past four weeks, and the company is a #2 (Buy) on the Zacks Rank at the moment. This combination indicates RIVN could be poised for a breakout.

The bullish case solidifies once investors consider RIVN's positive earnings outlook. For the current quarter, no earnings estimate has been cut compared to 4 revisions higher in the past 60 days. The Zacks Consensus Estimate has increased too.

Moving Average Chart for RIVN

With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on RIVN for more gains in the near future.


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