Running On Empty?

The automobile plays will always be in the spotlight, with TSLA headlining the space. Of course, RIVN which REPORTS tomorrow after the close deserves some mentions. It is a coin flip into the number with no real edge, although it did break above a bull flag pattern on 7/26 only to record a bearish dark cloud cover candle the very next session. It would not surprise me however it may act Wednesday. But taking a look at a best-of-breed European play RACE suggests some unease may be about to descend on the space. All of a sudden it has declined 12 of the last 16 sessions, and its WEEKLY chart recorded bearish dark cloud cover and engulfing candles the weeks ending 7/21 and 8/4 (three of the last 5 weeks fell by 3% and each CLOSED at lows for the WEEKLY range). A break below this area would likely see a move back toward the WEEKLY cup base above the 270 area from Q1. It was a good start Monday with a bullish harami candle. Will it follow the path lower of BMWYY which already decisively undercut its 50-day and breaking BELOW a bull flag pivot of 41? Overall the autos were the worst actor inside discretionary, with HOG contributing with a slumping 5% and extending its losing streak to 6 after a swift rejection at the round 40 number and 200-day SMA on 7/27.

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