Friday, November 22, 2024

AI Lender Sets Up for Potential Breakout

Trade of the Day Wake-Up Watchlist

"Stacked EMAs and multiple squeeze setups, combined with a 28.5% short float, point to significant upside potential in UPST."

Nate Bear, Lead Technical Tactician, Monument Traders Alliance

Nate Bear

When multiple squeezes align with stacked EMAs and a massive short float, it's time to pay attention.

That's exactly what we're seeing in UPST right now, and my scanner is lighting up with signals. 🎯

Just yesterday, we caught a quick 50% winner on our UPST swing trade, but I'm seeing an even bigger setup forming.

With a massive 28.5% short float and fresh momentum from its recent earnings beat, this could be the perfect storm we've been waiting for.

While Upstart operates in the AI lending space, the real story here is in the technical setup that's forming.

What Makes UPST Special Right Now?

 

First, let's look at the daily setup:

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  • Daily EMAs (8, 21, 34, 55) are stacked bullishly, with each moving average trending higher underneath price - this is one of the strongest trending patterns you can find
  • Price is respecting the 8 EMA as support on pullbacks, showing bulls are in firm control
  • A massive 28.5% short float provides potential fuel for explosive upside moves
  • Strong earnings catalyst from Nov 7th, showing positive EBITDA ahead of schedule

The Squeeze Setup

My scanner is showing multiple squeezes on UPST, and here's why that's significant:

A squeeze occurs when volatility contracts (shown by red dots on my indicator) followed by a release of that energy.

Think of it like a spring coiling up before release. What makes these squeezes particularly bullish is:

  • The momentum indicator (histogram) is showing increasing green bars
  • Price is in a clear uptrend with stacked EMAs
  • Each squeeze release has led to higher prices

Your Action Plan

Here's exactly how I'm playing this setup:

Yesterday's trades already showed us the potential:

Swing Trade: I bought 5 UPST 11/29 $75 calls @ $2.10 → STC @ $3.11 for a 50% gain.

In addition, I purchased call options expiring today for what I call a "lotto" play… a high risk, high reward trade.

I'll be looking for re-entry around the $71-72 level to catch the next leg higher.

With multiple squeezes ready to fire and that massive short float, the next move could be even bigger than our last winner.

Want the Complete Trading Plan?

Join me in Profit Surge Trader this Monday at noon EST where I'll break down:

  • My exact entry points for the next UPST trade
  • The specific option strikes and dates I'm targeting
  • Real-time analysis of the squeeze indicators
  • Live Q&A to answer all your trading questions

Don't miss out on what could be one of the biggest momentum trades of the month.

Click here to join Profit Surge Trader and get instant access to Monday's live trading session.

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