Key takeout
Opendoor Technologies (Open) stocks rose sharply on Monday.
Stocks on the online housing real estate platform surged 120% before returning some of those profits as traders terminated their profits. The stock almost tripled last week after Eric Jackson, founder of EMJ Capital, began to comment favorably on members of the Reddit Trading Community behind GameStop (GME) Meme Stock Frenzy in 2021 and members of the Reddit trading community began sharing screenshots for Opendoor Trades.
Stocks have skyrocketed at more than six times the lowest from last month, trading at $3.21 per piece. This is good news for businesses facing the possibility of Nasdaq registration as their shares traded for less than $1 in 30 business days in May.
Below we take a closer look at Opendoor’s weekly charts and use technical analysis to identify price levels that are worth paying attention to.
A 200-week moving average provides resistance
After hitting a bottom last month, Opendoor stocks surged as retailers tried to capitalize on the stock’s momentum. Prices went up on Monday and then hit overhead resistance while closely monitoring the 200-week moving average.
Recent purchases have been occurring in record volumes, indicating strong trading activity for the stock. The relative strength index confirms the acceleration of price momentum, but the buy conditions also flash, increasing the chances of short-term price fluctuations.
Identify two overhead areas on Opendoor’s charts to watch if your purchases are frenzy, and point out the level of support that is worth monitoring during a potential pullback in stock.
Overhead area to watch
This first overhead area to monitor is $5. This area on the chart, currently just above the downward 200-week MA, could provide resistance near Monday’s highs, providing a trendline connecting the range of corresponding price action on the chart dating back to June 2022.
A critical volume collateral breakout above this area could trigger a rally towards $11. Tactical traders who are anticipating follow-through purchases may consider it a good place to lock in profits near the short counter trends of February 2022 and a period of sideways drift in 2020.
Support level worth monitoring
During stock pullbacks, it is worth monitoring the initial support level of $1.80. A retracement into this area could attract interest on purchases near the trough in November 2023, with a range of charts between June and December last year.
Finally, Opendoor stock could revisit support at around 92 cents as the Bulls failed to follow this key level. Traders may consider placing a buy order in this area near the prominent low swing stocks in December 2022.
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As of the date this article was written, the author does not own the above securities.
