After the previous idea the price moved down from $7.70 to $7.57 by extended in this way the right shoulder of the pattern. Yesterday at the end of the cash session the price made a very nice movement and recovered +4.89% that are almost all the previous week losses. For those that are not in this trade yet, the price is ready to break out of the neckline of the "Inverse Head and Shoulders" pattern.
On the 60 min chart, we can see that the price is forming an "Inverse Head & Shoulders" pattern near a strong support zone . From the other side, we have also the 4-hour analysis that is supporting the reversal of the price higher from where it is actually.
Why Is This Stock Undervalued? UWMC reported 4Q20 net income of $1.37 billion and FY20 net income of $3.38 billion, an 821% and 715% increase over 4Q19 and FY19 respectively. The Board of Directors of UWMC declared its first regular quarterly dividend of $0.10 per share on the outstanding shares of Class A Common Stock. So we can say that the company is very solid as long as the profits are very good and they declared a regular quarterly dividend.