Be Prepared for a Reversal in Upwork (UPWK)

A rising wedge pattern has emerged in the chart of Upwork Inc (UPWK).  This is considered to be a bearish pattern, which means traders should be prepared for a down move in the stock…

Upwork Inc (UPWK) is a United States-based company that operates an online marketplace that enables businesses to find and work with highly-skilled independent professionals.

The company benefited significantly from the 2020 work-from-home trend boom and shows no sign of slowing down. Its third quarter sales were up 25% year over year. As people continue to work from home and more companies hire contractors, UPWK should see continued growth.

UPWK had $155 million in cash as of the end of the last reported quarter, compared with only $27 million in long-term debt. Though the company is not profitable with a negative net margin. 

Sales are expected to rise almost 20% this year, but the stock’s valuation is quite high with a Price to Sales ratio of 16.5.

The stock has shown strong momentum over the near, mid, and long-term. This has led to a B Momentum grade in our POWR Ratings system. Its overall rating is Neutral though. 

Take a look at the 1-year chart of UPWK below with the added notations…

See chart and continue reading at