Yesterday UPST beat earnings expectations, but set very low guidance for the next quarter. The stock was halted for trading after earnings, and there was a strong selloff afterwards. Despite the selloff, this dip has been getting bought up. UPST rebounded off the $20.49 support line. The white zone has been an area of resistance between $24.10 and $29.19, and the light blue trendline remains as a key price target ahead. I think investors are not going to be very excited to buy UPST due to its weak guidance so I would look to close this trade when it’s in profits and look for other better opportunities.
UPST Guidance
The guidance for UPST is not that bad, it seems like a big overreaction. In fact the guidance for next quarter is higher than it was for the quarter that just passed. I would still leave the UPST trade open, once there is quantitative easing UPST is likely to perform well. The best price level for adding more are dips below $21, between $20.50 and $20.70 for the best entry.
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