Bulls Making Breakout, Are Traders Ready to Surf?

The management of Nu Holdings Ltd. (NYSE: NU) has been bullish on the growth it may incur this fiscal year. The management has stated that the business model continues to compound growth and profitability.

Nu Flowing with the Market

During the second quarter of 2023, they further stated that Nu has maintained its positive trajectory, with operating trends growing. This quarter, the total revenue made by the firm came to $1.6 Billion which is a growth of 77% year-on-year. Moreover, the firm ended the quarter with an EBITDA margin of 21%

NU stock price is relatively new in the market. The stock made its debut in 2021 with an opening price of $12.24. Unfortunately, for the investors of NU, this was an all-time low. The market corrected its valuation, pushing the price more than 3 times below the all-time high. However, the glimmer of hope came in the NU charts when the stock made a breakout. The bulls pushed the price past its major resistance of $5.82 in May.

Technical Analysis and Prediction of the NU Stock Price

The NU stock showed a bullish rally that continued till now, as the bulls continue to take support of the trendline. At press time, the NU stock price is trading at the level of $8.17. The stock is near the resistance level of $8.17 as the bulls pursue this uptrend. The immediate support, on the other hand, is situated at $6.80. Moreover, the 2nd support and resistance are situated at $5.33 and $10.15, respectively.

Now, the Moving average indicator, 50-day exponential moving average (EMA), and 150-day EMA made a bullish crossover back in May. At the press time, the 50-day EMA at $7.53 is hovering below the price action while the 150-day EMA is at $6.90 confirming the current bullish rally.

Relative Strenght Index Insights

On the other hand, the relative strength index (RSI) has just bounced off its oversold level of 32, back in August end. As the bulls rose, reclaiming the support, the RSI reached its oversold level. This caused the bulls to make some short-term corrections. At present, the RSI is at 60 while its simple moving average is at 62, which is showing a sudden selling in the market.

The prediction for NU stock price is bullish for the short term. Looking at the current interaction with the RSI and its SMA, it seems that the bulls have control over the current trend. This may result in a breakout past the immediate resistance level. If things go south, the trendline is there to give the required support, followed by the immediate demand zone at $6.80.

Conclusion

Nu Holdings Ltd. (NYSE: NU) came into the market with an opening price being its all-time high till now. The NU stock started rising after breaking a major resistance level in May. At the press time, the stock is in an uptrend and its prediction is bullish.

Technical Levels

Support Levels: $6.80 and $5.33
Resistance Levels: $8.17 and $10.15

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks or related indexes comes with a risk of financial loss.