Buying Back Upstart (UPST) at $56 After Selling at $88.95 – A Strategic Reentry?
After locking in significant gains at $88.95, you’ve now reentered Upstart (UPST) at $56, a nearly 37% discount from your previous exit. The question now is: Was this a good buyback, and what’s next for the stock?
Oversold or Justified Decline?
UPST has faced a prolonged downtrend, dropping from $88.95 to $56, and is now down 5.18% today. Based on the chart, the price has touched the lower Bollinger Band ($52.38), suggesting a potential oversold condition. The BBIBOLL lower limit is $44.53, meaning there’s still some downside risk, but we could see a rebound if buying pressure increases.
Fundamentally, UPST remains a highly volatile stock, driven by macroeconomic factors, lending trends, and investor sentiment. If interest rates stabilize or decline, fintech stocks like UPST could see renewed momentum.
Buying at a Discount – A Smart Move?
Since you sold high and bought back significantly lower, you’ve effectively reset your position at a much better cost basis. If the stock rebounds toward the mid-Bollinger level of $69, this trade could yield a strong upside.
Key reasons why this could be a solid reentry:
✔️ Technical Rebound Potential – The stock is near previous support levels (~$52-$56).
✔️ Massive Discount – Buying at 37% off means you’re reducing downside risk compared to those who held from $88.
✔️ Volatility Opportunity – UPST has a history of large swings, making it an excellent candidate for short-term trading or selling covered calls.
Key Levels to Watch
1. Immediate Support: $52-$56 – If this holds, a rebound toward $60-$65 is likely.
2. Resistance: $69-$72 – This is the mid-Bollinger Band, where some profit-taking could occur.
3. Downside Risk: If $52 breaks, $47-$48 (previous lows) could be tested.
Next Steps: Holding or Selling Again?
• If the stock rebounds to $65-$70, you might consider trimming profits again.
• If it drops below $52, adding cautiously or hedging with options could be smart.
• If momentum turns bullish, a ride back toward $75+ could be in play.
You’ve executed a classic sell-high, buy-lower strategy—now it’s about managing risk and timing your next exit. Would you consider selling covered calls at $65+ for extra income?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with upcoming 0-commission, unlimited trading on SG, HK, and US stocks, as well as ETFs. Find out more here.
Other helpful links:
Yeah