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Upstart Has Pulled Back in a Big Way

NASDAQ:UPST   Upstart Holdings, Inc
Upstart has been a hypergrowth stock since going public 11 months ago. It priced for $20 on December 15 and ran as high as $401.49 in mid-October. It then stalled and lost more than half its value.

The pullback has brought the fintech near some potentially important levels. First is the price area around $190, where UPST peaked in June. Traders may look for this old resistance to become new support.

Second, the 200-day simple moving average ( SMA ) is rising quickly from below. Given its short history, the stock has never tested this SMA .

UPST is oversold as well, based on two measures. The Stochastic oscillator fell to its lowest level ever on Friday. Price is also the furthest ever from its 50-day SMA , according to TradeStation’s custom script Distance from MA.

Finally, UPST’s fundamentals have been strong, with results beating estimates the last four quarters.

Despite these potential positives, short-term momentum remains very bearish following the sharp drop. Traders may want to watch for potential stabilization around the 200-day SMA .

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