Upstart Holdings' Charts Are Pointed to the Cloud(s)

Here's a strategy for when to buy UPST.

One Real Money subscriber recently asked me to look at the charts of Upstart Holdings Inc. (UPST) . Why not? It seems that the company is a cloud-based AI leading platform. For people who do not want to deal with an overworked and grumpy loan officer, it sounds perfect.

Let's check out the charts. 

In this daily bar chart of UPST, below, we can see that after this company went public in December, prices quickly rallied into March and then turned sideways to make a consolidation pattern around the $120 area. Prices took off again on the upside in August and have nearly tripled. Amazing. UPST is trading above the 20-day and 50-day moving averages.

Also, trading volume has been increasing since March, as the word gets out to traders and investors. The daily On-Balance-Volume (OBV) line was steady until early August, and then it really strengthened. The Moving Average Convergence Divergence (MACD) oscillator is clearly bullish. 

 

In this weekly Japanese candlestick chart of UPST, below, we see a bullish picture. UPST is in an uptrend and we can tell that, because of the string of white real bodies. The OBV line is rising from the middle of July and the MACD oscillator is bullish. 

 

 

 

In this daily Point and Figure chart of UPST, below, we can see that UPST reached and exceeded a $139 price target. Every charting technique has its limitations.

 

 

In this weekly Point and Figure chart of UPST, below, we can see an ambitious price target of $817. 

 

 

 

Bottom line strategy: Traders should try to buy UPST in the $320-$300 or basically on a shallow pullback. Risk to $275 for now. Our price targets are $360 and then $480 - three and four times the base at $120. Longer-term look for the Point and Figure target of $817. 

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