UPST

UPST: technical analysis - support and resistance

After a bearish move, the stock returns to the ascending channel – will it find support at the top of the channel or drop to test the bottom?

By the SpyStocks desk · 4y ago · 2 min read

$UPST Part 2:

Undoubtedly, the stock's performance throughout the year has been almost entirely bullish.

Which indicates two things: 1. According to the "efficient market" hypothesis, the stock's performance is derived from the company's performance, which points to a bullish long-term direction.

2. It seems we have entered a justified bearish move relative to the gains.

Before the earnings release on 10/11, the stock broke a 'head and shoulders' pattern, which signaled what was to come. Today the stock is returning to the ascending channel, and in the coming days it will become clear if it will find support at the top of the channel or drop to test the bottom + a significant support line at $160.

Support levels: 100-day moving average (green) and the support zone of $192-$205, with the 200-day moving average (red) and the bottom of the channel combined with support at $150-$160 below them.

Resistance levels: the top of the channel and the 50% Fibonacci retracement, which create resistance between $240 and $250.

If it overcomes these, the 50-day moving average (blue), the resistance zone at the gap open of $265-$270, and the gap close at $310 will await it.

Nothing stated herein is a recommendation; anyone using this information does so at their own discretion and sole personal responsibility.

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