Upstart Holdings (UPST) is scheduled to report their latest quarterly numbers to shareholders and analysts next Tuesday, November 8th. The stock price has suffered the past 12-13 months. Trading volume has increased in recent months and that is a potential sign that ownership of shares have moved from weak hands to strong hands.
Let's drill deeper in the charts of this company that provides a cloud-based artificial intelligence (AI) lending platform to improve access to credit while reducing the risk and costs of lending for bank partners.
In this daily bar chart of UPST, below, we used a log-scale to display the price action which shows such a large percentage decline. Prices are well below the declining 200-day moving average line and rallies to the declining 50-day moving average line have been rejected.
The On-Balance-Volume (OBV) line has been in a longer-term decline as traders have remained more aggressive sellers of UPST. The Moving Average Convergence Divergence (MACD) oscillator is hugging the underside of the zero line.
In this weekly Japanese candlestick chart of UPST, below, we have a hard time with the candlesticks as the scaling has turned all the recent candles into spinning tops. The slope of the 40-week moving average line is negative (bearish). The weekly OBV line is pointed down and 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 $15 area.
In this weekly Point and Figure chart of UPST, below, we can see a downside price target in the $12 area.
Bottom line strategy: I have no special knowledge of what UPST will report to shareholders next week. The charts and indicators are weak but in this current market environment a minor beat can prompt a bounce or even a sharp upside gap because of short covering. I would stand aside.
