Upstart Looks Anything But Up on the Charts

The shares are in a sharp downdraft from their zenith in October.

In our May 10 review of Upstart Holdings (UPST) we wrote that "UPST may have some minor recovery bounce but I would not recommend trying to play it. Just stand aside and let UPST fall." On Wednesday a major sell-side firm cut their fundamental recommendation of this artificial intelligence (AI) lending platform to "underweight" with a $19 price target.

Let's check out the charts of UPST again.

In the daily bar chart of UPST, below, we can see that the shares have stayed weak since our May 10 review. Prices are down sharply from their zenith in October. UPST has tried to move sideways from the May low but that stability may prove to be temporary. The slopes of the 50-day and 200-day moving averages are bearish.

The On-Balance-Volume (OBV) line shows weakness from October to May followed by a slight improvement. The Moving Average Convergence Divergence (MACD) oscillator has inched up from a low in May but still remains below the zero line.

 

In the weekly Japanese candlestick chart of UPST, below, we have trouble finding any positive clues. The candles are not showing us a bottom-reversal pattern and not showing us lower shadows.

 

The weekly OBV line has not made a new low for the move down but it also has not turned higher. The MACD oscillator is bearish and may only generate a cover shorts buy signal in the days ahead.

 

 

In this daily Point and Figure chart of UPST, below, we can see a potential downside price target in the $31 area.

 

 

In this weekly Point and Figure chart of UPST, below, we can see a target of $10.

 

 

Bottom-line strategy: shares of UPST are indicated lower Wednesday. Continue to avoid the long side of UPST.

 

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