Upstart Stock Reaches New All-Time High: What's Next?

Upstart Holdings, Inc UPST made a new all-time high of $296.82 Thursday. The stock reached a previous all-time high of $294.23 on Sept. 10 before entering into a consolidation on the daily chart.

See Also: Analyst Ratings For Upstart Holdings

The Upstart Chart: The consolidation after the all-time high set Upstart into a bull flag pattern on the daily chart, with the pole created between Aug. 11 and Sept. 9 and the flag formed between Sept. 10 and Wednesday.

On Wednesday, within the flag pattern, Upstart printed a bullish hammer candlestick after wicking off a support level at $250. The hammer candlestick indicated higher prices were in the cards for Thursday and the stock broke up from the flag pattern.

Upstart’s relative strength index (RSI) is currently sitting at about 74%, which puts the stock square inside overbought territory. When a stock’s RSI measures over 70%, it is often a sell signal for technical traders, although a stock’s RSI can stay elevated for a long period of time.

When Upstart’s RSI surpassed 70% on March 22, the stock declined 36% over the following three trading days.

Upstart is trading above the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trending above the 21-day, both of which are bullish indicators. The stock is also trading above the 200-day simple moving average, which indicates long-term sentiment is bullish.

• Bulls want to see consolidation take place to drop Upstart’s RSI, which would give it more power to run higher. If Upstart can close the day above its previous all-time high, there is no resistance in the form of price history above.
• Bears want to see big bearish volume come into Upstart’s stock to drop it down below the eight-day EMA. If Upstart loses the area as support, it could fall back toward $259, and below the level there is further support at $228.33.