UPST mid-term VIEW Pre Earning LONGUPST on the daily chart with 2022-2023 in range shows a downtrend of more than 70% and
now a round bottom reversal. The volume profile shows the high volumes of the high volume
area which is relatively thin and mostly below the current price. That is to say, UPST has a
lot of volume voids to fill on its way back to $162 . The Triple EMA ( 200,100,50) shows
a convergence over a long interval followed by the reversal and now divergence. The
MACD indicator is upgoing as are the trends of the dual RS lines of the RSI indicator. I see
this as a long swing trade or investment while UPST is awaiting earnings next month.
For targets, I plan the red lines generated by the volume profite and so $94 and $161.
UPST is on my current favorite stock list. My current holding includes an option striking $51
for 8/4. I will roll that option over about 8/2 to avoid time decay. Additionally,
I will buy another option striking $75 and expiring on 9/15 costing about $950 at the
market price with the bid/ask spread of about 4%. I expect the combined two call optins
will yield on average 5-7% per trading day and may hold them through the earnings period.
The only downside risk is that an earnings beat is somehow already priced into UPST
and that the momentum will decelerate and fade. Buying the contact cheap and out of
the money seeks to manage that risk.
