Rivian / The technology merger with VW has awakened the Black Swan pattern.

Expectations for both companies are very high and could be a significant step against competitors from the Far East. Will this be enough to keep the German automotive industry competitive?

The weekly chart currently presents a noteworthy situation.

 There is a so-called Black Swan pattern, which in technical analysis stands for a trend reversal. The target determination of this harmonic pattern typically occurs in two retracements.

• The smaller Fibonacci is the so-called conservative retracement.
•  The longer-term Fibonacci is called the aggressive retracement.

For the technical analyst, the cluster zones marked in the yellow boxes are of particular interest as possible (interim) price targets. In this context, the open gap and the MACD are also noteworthy, structurally represented as a head and shoulders formation on the chart. 

How do you view the merger, and do you see a realistic chance for VW to assert itself against BYD and Tesla with this collaboration? The chart at least offers a perspective on a fruitful collaboration.

Chart Update 15.07.2024