Opendoor Technologies Inc. (NASDAQ:OPEN) shares are extending Thursday’s sharp decline into Friday as the stock continues to feel the weight of a deteriorating technical picture and a market that is treating any strength as an opportunity to sell.
- Opendoor Technologies stock is trading near recent lows. What’s ahead for OPEN stock?
The Selloff Continues as the Chart Offers Little Support
Friday’s session is looking like a continuation rather than a reversal. OPEN is sitting 16.6% below its 20-day moving average and 32.1% below its 200-day moving average, keeping the intermediate and longer-term bias pointed lower until the stock can reclaim those levels in a meaningful way. A near-term positive exists in that the 20-day sits above the 50-day, but the death cross from March, when the 50-day dropped beneath the 200-day, remains an overhead constraint that has been capping every rally attempt.
Momentum is deteriorating further, with MACD below its signal line and the histogram in negative territory, signaling the most recent upswing is losing energy unless buyers step in quickly enough to reverse the trend. The stock is trading much closer to the floor of its 52-week range of $1.70 to $10.87 than its highs, a position that can produce sharp bounces but has also produced a steady stream of failed rallies beneath major moving averages.
Key resistance sits at $4.58 near the 50-day moving average while $3.81 represents the nearest support level where buyers have historically attempted to arrest pullbacks before they become something more persistent.
Benzinga Edge assigns the stock a momentum score of just 27.93, a reading that aligns with the price action and reflects a stock that struggled to participate even when its sector was catching a bid earlier in the week.
Earnings on Aug. 4 Are the Next Real Test
The fundamental picture that awaits investors on Aug. 4 is not giving bulls much to work with ahead of time. Analysts are projecting a loss of 3 cents per share, a step back from the 1 cent loss reported in the same period last year, on revenue of $900.86 million, down sharply from $1.57 billion in the prior year period. Those numbers keep the debate alive about whether operational progress can reassert itself against a difficult housing and financing backdrop.
OPEN Shares Are Falling
OPEN Price Action: Opendoor shares were down 0.78% at $3.82 at the time of publication on Friday, according to Benzinga Pro.
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