Rivian Automotive Inc. (NASDAQ:RIVN) stock rose Wednesday as Democratic victories in the U.S. midterm elections fueled optimism about federal support for clean energy.
The gains came amid a broader market rally. The Nasdaq climbed 2.20%, while the S&P 500 gained 1.81%.
Democrats gained control of both chambers of Congress, raising expectations that federal clean-energy policies could remain in place.
The political shift lifted sentiment across the electric vehicle (EV) and renewable energy sectors.
Tesla Faces Political Headwinds
Meanwhile, Tesla Inc. (NASDAQ:TSLA) shares declined Wednesday, bucking the broader EV rally.
Investors weighed the possibility of increased congressional scrutiny of CEO Elon Musk’s businesses and political activities following the Democratic victories.
Musk contributed more than $445 million to Republican political groups ahead of the November midterm elections.
See More:
Top Value Stocks
Technical Analysis: Rivian Faces Key Resistance
Rivian trades 10.7% above its 20-day simple moving average (SMA) of $12.69, signaling improving short-term momentum.
However, the stock remains 2% below its 50-day SMA of $14.33 and roughly 9% below its 100-day and 200-day averages of $15.39 and $15.42, respectively.
The moving average convergence divergence (MACD) indicator is above its signal line, suggesting buying momentum is improving.
Still, September’s death cross remains in place, with the 50-day SMA below the 200-day SMA.
Traders are watching resistance near $15 and support around $13. A sustained move above resistance could strengthen the recovery.
RIVN Stock Price Action
Rivian shares were up 6.05% at $14.09 at the time of publication Wednesday, according to Benzinga Pro data.
Image via Shutterstock
