Why UP Fintech Holding Stock Looks Like It's Gearing Up For A Breakout

UP Fintech Holding LTD. TIGR shares were trading lower Thursday after retail traders were able to push the stock down. The stock was trending throughout the day on social media sites such as StockTwits.

UP Fintech Holding was down 2.74% at $20.22 at the close. 

UP Fintech Holding Daily Chart Analysis

• Shares are forming into what technical traders call a pennant pattern.
• The stock is trading below the 50-day moving average (green), but above the 200-day moving average (blue), indicating the stock is likely facing a period of consolidation.
• The 50-day moving average may hold as an area of resistance while the 200-day moving average may act as a place of support.

Key UP Fintech Holding Levels To Watch

• The pennant pattern began forming in early 2021, and may see a breakout within the next couple months.
• The price will likely continue to be condensed between narrowing highs and lows until the stock is able to break above the pattern support or resistance and possibly see a strong move in the same direction.
• The Relative Strength Index (RSI) has been trading below 50 throughout the past few days. The RSI is sitting at 38 and has been steadily dropping the past few days. The RSI is starting to near the oversold area, which begins at the 30 mark.

What’s Next For UP Fintech Holding?

Bulls would like to see the stock bounce at pattern support and rise back up toward pattern resistance. Eventually bulls would like to see the stock break out of the pennant and see a strong bullish move.

Bears would like to see the stock break below the pattern support. If the stock was able to break below the pattern support and have a period of consolidation below, then it may see a further bearish push.