Upstart Stock Looks Ready For A Breakout After Earnings

Upstart Holdings Inc. UPST shares are trading higher Wednesday after the company announced better-than-expected second-quarter financial results. The company reported earnings of 62 cents per share, beating the analyst estimate of 25 cents per share.

Upstart Holdings was up 23.37% at $167.40 at last check.

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Upstart Holdings Daily Chart Analysis

• The stock gapped up near resistance in what technical traders call an ascending triangle pattern
• The stock is trading above the 50-day moving average (green), indicating sentiment has been bullish. This moving average may hold as an area of support.
• The $170 price level has held as resistance multiple times in the past and the stock has struggled to cross the level. The stock saw a gap higher to near this level, but has been unable to cross above.
• The Relative Strength Index (RSI) has been moving up the past couple of weeks and sits at 75. This means there has been an increase in buyers in the stock and it now sits in the overbought range.

What’s Next For Upstart Holdings?

Bullish traders are looking to see the stock continue to push higher and break out of the ascending triangle pattern. Bulls would then like to see a period of consolidation for a potential next leg.

Bearish traders would like to see the stock fall back to the higher low trendline and then eventually cross below it. Bears would like to see consolidation below the trendline for a possible move downward and change in trends.