Rivian is oversold (RSI 31.85) after falling from $17 to $13.75 since August and is testing a parallel channel bottom for the sixth time since April 2024, where a breakdown has a slight edge; into October 29 earnings a bounce is expected, though a slight drop to $13.51 may come first, with upside to 1553–1575.

Let's start with Rivian, which will announce its earnings soon. But let's see what's been happening with Rivian lately , since August, when its stock price has plummeted from $17 to $13.75.

Now look at this long- term parallel channel. This channel started in April 2024, and hit the bottom once, twice, three times, four times, five times. This is the sixth time. Now, the odds are roughly equal, with a slight advantage to breaking through this zone.

But guys, we are in an oversold zone , about to cross the 30- point threshold on the daily Relative Strength Index, which is currently at 31.85.

So, what I think will happen in this particular deal with Rivian, even though we are expecting a bounce now, is that we are essentially on a cautionary path. I expect a slight decrease with the possibility of the price dropping and touching the $13.51 mark .

Now let me show you the upcoming earnings results so that you are also aware of them, because when the price drops sharply before the earnings announcement, any good news that will be released on October 29 is likely to raise the price and give it a strong rebound.

Now, where will this bounce on this chart lead us? Let me show you. I will use trend lines, go back to the previous pivot points, draw a trend line to that pivot point, and then connect it to the next pivot point immediately.

You can see how the stock price breaks through this area, and even breaks through it again, then bounces back, breaks through this level, but ultimately heads upwards.

This is one of the nearby destinations. I will explain the graph so that you can see it better. As you can see, there is an "X" mark approximately at the 1572 level. I expect that if Rivian's stock price bounces down from this parallel level, currently at 1374, or down to 1351, this potential bounce could push us up to the 1553 to 1575 range, where the trend lines begin to converge.

This is an excellent opportunity. As you can see, Rivian's stock price has remained within this parallel range for a long time, and has made strong bounces from the bottom of this range for more than two years.

So, it is an interesting investment opportunity , and I will pay special attention to it in the coming days.