Upstart crumbles making new lows. Will it bounce?Hi everyone,
Today I will demonstrate another example of a catastrophic dump in growth technology stock. This time we are taking a look at Upstart NASDAQ:UPST .
The stock IPOed in December 2020 and I still remember the hype created around it. In August 2021 it started goind parabolic. Classic growth IPO stock.
The entirety of fintwit community seemed to hold this stock in their portfolios. Everyone was boasting how their YTD return is 80% thanks to Upstart performance.
That's when you know it's time to get out.
NASDAQ:UPST topped in October 15. The stock was valued at 420 times earnings.
It's price fell 72% in three months. From 401 all the way down to 111 .
Even after 72% fall TTM P/E ratio of the stock is 113.
Now, the question is will it bounce ?
The stock currently is in a very steep downtrend, which will be broken easily, once determined buyers step in. Thus far, they are nowhere in sight.
Since the IPO by far the largest portion of volume traded occurred in 122-137 price range. In order to rebound we need to see acceptence in this area.
Otherwise, look out for these levels below:
103, 81, 43.
Please let me know what are your thoughts on a current state of the tech sector.
As always, trade wisely and good luck!
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Disclaimer!!!
This is not financial advise
