Trading Insights
Rivian is Breaking Out: 3 Keys to Spotting Stock Market Breakouts
After we spotted UOA in Rivian stock, RIVN broke out above its 200 Day SMA for the first time in its history.
Rivian has been under pressure for much of its life in the stock market. It IPO’d at the height of the growth-driven rally in November, reaching sky-high valuations and attaining a short-lived share price of over $125 dollars. Unfortunately, it was all down hill from there. The bear market of 2022 came fast and hard for the growthiest areas of the market — and Rivian fit perfectly into that category.
However, in 2023, a new meta seems to have arrived for the stock market — and it’s helping some of the hardest hit names of 2022 begin their catch-up trade. When momentum shifts like this, it’s important to hunt for decisive changes in the technicals of stocks you wish to trade. Things that signal a firm, unquestionable reversal, which could lead to a breakout.
Key #1: Pay attention to the options market. At Market Rebellion, we were all over this breakout in Rivian because of three words: Unusual Options Activity. Through monitoring the options market for highly unusual trades (in this case, a big purchase in far OTM call options, back to back), we were put on high alert for a potentially big move in this stock.
Key #2: Keep an eye on the most basic technicals. You don’t have to be a CMT to get an idea of what’s going on with a particular stock. In fact, sometimes it’s better if you only focus on the simplest indicators and charting tactics — the things that everyone knows about. In this case, we noticed a glaring change in Rivian’s chart: It’s first ever cross above the 200-Day Simple Moving Average. When a stock crosses above it’s 200-Day SMA — especially after spending a long time below it — it can be a big sign that a reversal in trend has arrived. Adding to that point, this 200-Day SMA crossover just happened to take place at a key level of past support and resistance.
Key #3: Stay disciplined, and trust your gut. You’ll never know 100% if a trade idea is going to work out or not. So you need to come up with a plan that you can stick to every single time you make a trade. Maybe it’s, “If I witness UOA and a technical pattern that confirms the bias of the UOA, I’ll make the trade with no more than X% of my portfolio, and if the trade doubles, I’ll take my profit.” Maybe it’s something else entirely — the specifics aren’t the important part. What’s important is that you make a plan, and stick to a plan, to prevent emotions, fear, and greed from getting in the way of a consistent trading strategy. Consistency is the most important thing on your trading journey.
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- 1 Primary Trade Idea + Bonus Trades Per Week
- 1 LIVE Weekly Webinar
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- Weekly Newsletter
- Pete Najarian's UOA Playbook
- VIP Friday Virtual Cocktail Hour
See Terms of Use for details.
UOA Pro
- 10+ Trade Ideas Per Week
- 3 LIVE Weekly Webinars
- LIVE Q&A Session With Lead Instructor Bill Johnson
- Q&A Sessions
- PLUS All Essential Features
Full 30-day money back guarantee on annual subscriptions. See Terms of Use for details.
UOA Essential
$
995
/year
Billed Annually at $995
- 1 Primary Trade Idea + Bonus Trades Per Week
- 1 LIVE Weekly Webinar
- Member Forum
- Weekly Newsletter
- Pete Najarian's UOA Playbook
- VIP Friday Virtual Cocktail Hour
- SAVE 58% Annually
Full 30-day money back guarantee on annual subscriptions. See Terms of Use for details.
UOA Pro
$
3,495
/year
Billed Annually at $3,495
- 10+ Trade Ideas Per Week
- 3 LIVE Weekly Webinars
- LIVE Q&A Session With Lead Instructor Bill Johnson
- Q&A Sessions
- PLUS All Essential Features
Full 30-day money back guarantee on annual subscriptions. See Terms of Use for details.
UOA Essential
- 1 Primary Trade Idea + Bonus Trades Per Week
- 1 LIVE Weekly Webinar
- Member Forum
- Weekly Newsletter
- Pete Najarian's UOA Playbook
- VIP Friday Virtual Cocktail Hour
- SAVE 58% Annually
Full 30-day money back guarantee on annual subscriptions. See Terms of Use for details.
UOA Pro
- 10+ Trade Ideas Per Week
- 3 LIVE Weekly Webinars
- LIVE Q&A Session With Lead Instructor Bill Johnson
- Q&A Sessions
- PLUS All Essential Features
Full 30-day money back guarantee on annual subscriptions. See Terms of Use for details.