Upstart Holdings Inc. (UPST) is expected to report its second-quarter results after the close of trading here on Monday. In advance of that report, let's take a look at the charts and indicators of Upstart, which operates a cloud-based artificial intelligence (AI) lending platform to improve access to credit for consumers while reducing the risk and costs of lending for bank partners.
In this daily bar chart of UPST, below, we can see that prices have had a long and very painful decline from around $400 a share back in October to around just $25 now. Prices are still trading below the declining 50-day moving average line and the weak 200-day line. The daily On-Balance-Volume (OBV) line is still pointed down and tells us that sellers of UPST continue to be more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator has stayed below the zero line since November.
In this weekly Japanese candlestick chart of UPST, below, we see a bearish picture. I failed to find a bottom reversal pattern on this chart. The slope of the 40-week moving average line is negative. The weekly OBV line only shows some stability activity in July. The MACD oscillator is bearish.
In this daily Point and Figure chart of UPST, below, we can see a potential downside price target in the $19 area.
In this weekly Point and Figure chart of UPST, below, we see a $9 price objective.
Bottom line strategy: I have no knowledge of what UPST will report to shareholders and analysts this evening, but the charts do not support the case for a rebound. A bounce could happen but I suspect it will not be long sustained.
