Rivian Automotive Inc. RIVN shares are trading lower Tuesday, although there looks to be no company-specific news to explain the price movement. Shares are falling lower in a pattern but are nearing resistance and possibly ready for a reversal soon.

Rivian was down 4.27% at $102.52 at last check.

Rivian Daily Chart Analysis

• The stock is nearing pattern resistance in what traders call a falling channel. Connecting the highs and the lows show two parallel lines where the stock has found support and resistance previously.
• A break above resistance in the pattern may show that the stock is beginning to stop the downtrend and starting to form a new uptrend.
• The Relative Strength Index (RSI) has been moving sideways since the IPO and sits at 49. This shows the stock is seeing a relatively equal amount of buyers and sellers.

(Click on image to enlarge)

What’s Next For Rivian?

The stock is downtrending in the channel, but may be setting up to break above the pattern resistance in the near future. The stock is hanging near resistance, and a break above could bring about a bullish move and a change in trend.