The company announced on Friday an ambitious plan to become the No. 1 lender by 2024, a position currently held by Rocket Companies (RKT) .
Ishbia said his "called shot" on Friday stems from the results the company has been able to deliver and confidence in the future of their business.
When asked about the recent declines in their stock, Ishbia said that UWM got lumped in with other companies, like RKT, but in reality, UWMC is forecasting growth not weakness.
Why is he so confident in his growth? Ishbia said simply that UWMC dominates the mortgage brokerage market but that market only accounts for 25% of all mortgages. Just growing their piece of the pie to 30% or 35% will translate into big gains.
Let's check and see if the stock can make some big gains.
In this updated daily Japanese candlestick chart of UWMC, below, we can see that last week there were upper shadows above $10.50 telling us that traders were rejecting the highs. Prices are trading above the rising 50-day moving average line and above the declining 200-day line.
The On-Balance-Volume (OBV) line has been moving up from early May telling us that buyers have been more aggressive in recent weeks. The Moving Average Convergence Divergence (MACD) oscillator has been in a bullish alignment above the zero line since the middle of May.
In this weekly candlestick chart of UMWC, below, we see a mixed picture. Prices are in a recovery rally from early May. The early May low has not been tested in any way and the large upper shadow in the current candle is a big turn off for traders.
The weekly OBV line is pointed up and the MACD oscillator has crossed to the upside for a cover shorts buy signal.
In this daily Point and Figure chart of UMWC, below, we can see that prices reached an upside price target in the $10 area.
In this weekly Point and Figure chart of UMWC, below, we can see a potential upside price target in the $14 area.
Bottom line strategy: Prices made a low in early May and have improved. There is a weekly Point and Figure target of $14 or so but I don't think this is a good use of your trading capital.