NU stock price has turned out to be a multi-bagger stock that is adding 63.37% to the portfolio of their investors in the past 6 months. The stock also has been very fruitful for short-term investors gaining 31.3% in the past 3 months.
The price has been very volatile on the charts in the past month and it is consolidating near the swing high. The price is probably waiting for the Q2 results after the disclosure which may decide the trend for the upcoming days.
The Q2 results are to be disclosed on the 15th of August 2023. The estimation of earnings as per the analysts expects revenue of $1.54 Billion with earnings of $0.041 afterward which the price may head towards a profit booking.
Nu Holdings Ltd. (NYSE: NU) is a digital banking company that offers innovative financial solutions. It was founded in 2016 by David Vélez Osorno, Cristina Helena Zingaretti Junqueira, and Adam Edward Wible. Its headquarters are located in George Town, Cayman Islands.
NU stock option-chain analysis states that the current implied volatility in the market is 52.27% with an increment of 0.2% in the last trading session.
The at-the-money strike price has 478 open contracts on the put side and 1,437 open contracts on the call side indicating the presence of sellers at the current level. The PUT/CALL ratio is 1.25 indicating a bullish sentiment in the market as per the data.
NU Stock Price Consolidating Before Q2 Results
Currently, NU stock price is trading at $7.76 and consolidating for the past 30 days in a 5-7% range while waiting for the Q2 results.
Analysts say that the price might decide a trend after the disclosure of Q2 results. The breakdown of the consolidation may lead to a profit booking as the stock has already gained more than 60% in the past 6 months.
The long-term outlook of the price trend is positive as the stock has already shifted its trend in the larger timeframe. The stock may show a decline in the short term which may ultimately turn out to be the formation of a higher swing low in the larger timeframe and the stock may resume its journey afterward.
The Short-Term Trend Seems Against the Long-Term Trend on Technicals
The daily NU stock price chart shows that the price is trading above the 200 EMA which shows long-term bullishness in the stock. The RSI and MACD are showing a divergence adding confirmation to the probability of profit booking in the short term.
Conclusion
Nu Holdings Ltd. is a digital banking company that has experienced a significant increase in its stock price in the past 6 months. The stock is currently trading at $7.76 and is in a consolidation phase, waiting for the Q2 results. Analysts predict that the results will determine the future trend of the stock, which may experience a short-term decline due to profit booking. However, the long-term outlook is positive, as the stock is above the 200 EMA and has shifted its trend in the larger timeframe.
Technical Levels
- Support levels: $6.75 and $5.77.
- Resistance levels: $8.18 and $9.01.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/08/12/nu-stock-q2-results-awaiting-is-it-the-silence-before-the-storm/