Opendoor Technologies (OPEN) fails to hold $14

Opendoor Technologies, Inc. operates as an online platform for buying, selling and trading-in residential properties.

Take a look at the 1-year chart of Opendoor (NASDAQ: OPEN) below with the added notations…

Chart of OPEN provided by TradingView

OPEN has held a major level of support at $14 (blue) for most of this year. The stock ended up slightly breaking below that support yesterday, which likely means even lower prices should still be coming, overall. If OPEN were to rally back up to that $14 breakdown level, it may now act as resistance. 

The Tale of the Tape: OPEN broke a key level of support at $14. A trader could enter a short position on any rallies up to or near $14 with a stop placed above the level. If the stock were to break back above the $14 level, a long position might be entered instead.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade.  Capital preservation is always key!

Good luck!

Christian Tharp, CMT 

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