Opendoor Technologies Inc.(NASDAQ: OPEN) price faced a breakdown and started trading below the 200-day EMA spot, showing a fresh selloff in yesterday’s market session. OPEN stock faced headwinds due to the rating downgrade from Citigroup, which led to trouble for the bulls. Analysts have cut the price targets from $3.90 to $2.70 and maintained a neutral rating.
Moreover, OPEN stock price action signifies the short buildup activity and rise in sellers’ interest, which led to panic selling in the stock. Furthermore, the crucial support zone of $2.50 was broken down, showing the sharp momentum of sellers. OPEN stock is now trading on the back foot and heading toward the primary support zone of $2.20, which might be retested soon based on the adverse price action witnessed on the charts.
Bulls need to sustain the support zone of $2.50 for a significant reversal and hold the gains boosting bulls’ momentum leading to a rebound. On the flip side, if follow-on selling continues, OPEN stock will retest further downside near $2.20. As per the option chain of OPEN stock, a strike price of $2.50 has an open interest of 69.2 Million shares on the put side, whereas 59.2 on the call side, which signifies that long positions were trapped and if mighty bulls did not manage to attain strength, further downside is possible till $2.10 amid the positive market sentiments.
At press time, OPEN stock price is trading at $2.43 with a massive intraday fall of 5.45%, showing a panic selloff in yesterday’s sessions. Moreover, the trading volume increased by 0.76% to 18.767 Million, showing seller interest and the market cap fell to $1.620 Billion. However, Analysts have maintained a neutral rating with a yearly target price of $2.70, suggesting a negative outlook for the following sessions.
Opendoor Technologies, Inc. operates as an online platform for buying, selling, and trading in residential properties. The company was founded by Eric Wu on December 30, 2013, and is headquartered in Tempe, AZ.
Will OPEN Stock Retest Its Support Zone of $2.00?
On the daily charts, the OPEN stock price has broken the immediate support zone of $2.50 and slipped below the 200-day EMA, showing an adverse price action. Furthermore, due to the negative market sentiment, bears have gained traction and took advantage by making short buildups.
The RSI curve sharply fell from the overbought zone; the oversold region showing a bearish divergence suggests that there is still a downside risk for the following sessions.
The MACD indicator showed a bearish crossover and formed red bars on the histogram, suggesting a negative outlook for the upcoming sessions.
Summary
Opendoor Technologies (NASDAQ: OPEN) stock price has showcased rejection from the 200-day EMA, and rating downgrades have spoiled the bulls’ initial momentum and trapped their long positions. Moreover, the OPEN stock still has a vacant space for a significant fall and may settle near the round mark of $2.00.
Technical Levels
Support Levels: $2.20 and $2.00
Resistance Levels: $2.50 and $2.80
Disclaimer
The views and opinions stated by the author or any other person named in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto or stocks comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/09/26/opendoor-stock-slips-post-rating-downgrade-will-selloff-persist/