On September 20, 2024, fellow MPTrader member Bloom asked Mike Paulenoff to look at his chart setup in Upstart Holdings (UPST). This is what they discussed in Mike's post to our Discussion Room in its entirety:
UPST (Upstart Holdings)... It is NO coincidence that when the Fed initiated its rate HIKE cycle in March 2022, it coincided with the steep, contractionary, prolonged bear phase in cloud-based AI lender UPST. It is also no coincidence that for the past six weeks, during which time the financial markets began anticipating the Fed's initiation of a new rate CUT cycle four years hence, UPST has exhibited a rally phase that strongly suggests the company could enter a new expansionary period accompanied by tailwinds provided by Fed monetary policy accommodation. With that as a positive background story, my technical setup work shows that all of the price action off of the 8/05/24 low at 20.60 has the right look of a completed initial rally to 45.71 (8/29/24) within a year long base-accumulation pattern. The price structure currently is perched above BOTH the 50 and 200 DMAs (see my attached Daily Chart), poised for upside acceleration above the 8/29 high at 45.71 that will trigger a run at the August 2023 failed rally high at 72.58, where UPST will find itself in an even more bullish technical setup that "threatens" to explode above a 2-1/2 year resistance plateau that implies an intermediate-term Target Window of 110 to 130. At this juncture, as long as any forthcoming weakness is contained above or within nearest support from 32-34, my technical setup work will remain bullish on UPST... Last is 39.80...
Fast-forward to this past week, we see on Mike's attached Daily Chart that UPST followed the upside scenario from my 9/20/24 analysis. The stock exploded higher in reaction to bullish catalysts from an earnings beat, stronger-than-expected earnings forward guidance, and in sympathy with the powerful response to the pro-business potential of the income Trump Administration. Last Friday's whopping 46% vertical upside assault powered UPST to a close well-above a 2-year, 6-month resistance plateau lodged between 71.00 and 72.60 that triggers intermediate-term targets of 102-107 in route to 120-130.
UPST is just one of the many individual stocks and ETFs discussed recently (TSLA, ORCL, TWLO, INTC, ARKK, WRBY, EWW, TLT, TBT, COIN, IBIT, to name just a few) that presented MPTrader members with very appealing risk/reward trading and investing profiles.
What's next as we enter the final six weeks of 2024? FOMO or too much too fast? Login this week to join Mike and MPTrader members ASAP for our intraday discussions about opportunistic technical and fundamental setups on individual stocks, ETFs, macro indices, commodities, energy, precious metals, and Bitcoin.
