For his second Executive Decision segment of "Mad Money" last Friday, Jim Cramer spoke with Dave Girouard, founder and CEO of Upstart Holdings Inc. (UPST) , a digital lending platform powered by artificial intelligence (AI).
Upstart's mission is to improve access to credit with offerings designed to be fair and inclusive, Girouard said. The company has announced it will be acquiring Prodigy Software to help expand its offerings to car buying. Upstart has also partnered with companies such as Intuit (INTU) to promote digital personal finance.
Cramer said investors haven't missed the growth opportunity in Upstart, even with shares doubling in the last week.
Let's see what the charts look like.
In this daily Japanese candlestick chart of UPST, below, we have limited price history but we can still draw some conclusions. Prices recently gapped sharply higher on heavy volume. Prices gapped above the shorter 20-day and 50-day moving average lines. The On-Balance-Volume (OBV) line turned up strongly and the Moving Average Convergence Divergence (MACD) oscillator jumped above the zero line for a buy signal. The two most recent candle patterns are large white bars and the middle of the first candle is likely to act as support, or around $100.
In this daily Point and Figure chart of UPST, below, we can see that prices have reached and exceeded an $88 price target.
In this weekly Point and Figure chart of UPST, below, we can see that the software is projecting the $300 area as a potential price target.
Bottom line strategy: Traders should be patient buyers of UPST and wait for a pullback and successful test of potential support at $100. If support develops, then traders could probe the long side with a $85 stop.
