Opendoor Technologies (OPEN) was flying higher on Thursday, up almost 20% after better-than-expected earnings.
The company beat second-quarter earnings expectations and delivered a strong outlook.
With the results has come a slew of positive analyst commentary, some of who have price targets of $40 or more.
It’s not the only stock ripping higher on earnings Thursday either, with shares of Palantir (PLTR) - Get Palantir Technologies Report up about 13% after its report. Despite in-line earnings, a strong outlook also has the stock rallying on the day.
That’s now two growth stocks that are well below their respective 2021 highs that are rallying on earnings. The post-earnings rally is breaking from the recent trend we’ve seen in growth stocks, many of which have fallen despite solid quarterly results.
With Opendoor Technologies, it’s clear the stock wasn’t spared amid the bear market in high-growth stocks. However, is a new uptrend beginning?
Trading Opendoor Technologies Stock
For the stock to hit some of the more bullish analysts’ price targets, shares of Opendoor would need to climb more than 100%.
I’m not saying it won’t happen, but it can’t happen without a smaller rally first. In that respect, I’m looking for a potential 20% to 25% rally from today’s levels.
With Thursday’s rally, Opendoor reclaimed its 10-day, 21-day and 50-day moving averages. It also cleared downtrend resistance (blue line).
That’s a lot of key levels and it’s a move that bulls should be quite satisfied with provided it holds up into the close.
If the stock can stay above the 50-day moving average on a closing basis, bulls can stay long Opendoor. Below this measure and it may not be ready to go on a larger rally yet.
On the upside, investors need to see this stock clear $18. Above that puts $20 in play, followed by the 50-week and 200-day moving averages. The latter two measures are what I’m targeting on the upside for the previously mentioned gain of 20% to 25%.
Above that and investors can turn their attention to the key retracement levels, like the 50% and 61.8% retracements.
For now though, let’s just see if this stock can close above $18. If it can, $20 to $22 could be on the table.