Opendoor Stock Soared More Than 40% Monday—Watch These Price Levels

Opendoor Technologies (OPEN) shares surged Monday as retail traders bid up Wall Street’s newest meme stock sensation.

Shares in the online residential real estate platform soared as much as 120% before giving back some of those gains as traders booked profits into the close. The stock nearly tripled in value last week after EMJ Capital founder Eric Jackson made favorable comments and members of a Reddit trading community behind the GameStop (GME) meme stock frenzy in 2021 began sharing screenshots of their Opendoor trades.

The shares have soared more than six-fold from last month’s low to trade at $3.21 a piece, good news for a company that faced a potential Nasdaq delisting in May because its stock traded below $1 for 30 consecutive business days. 

Below, we take a closer look at Opendoor’s weekly chart and use technical analysis to identify price levels worth watching out for.

200-Week Moving Average Provides Resistance

After bottoming out last month, Opendoor shares have surged as retail traders attempt to capitalize on the stock’s momentum. The price gapped higher on Monday before running into overhead resistance around the closely watched 200-week moving average.

The recent buying has occurred on record volume, signaling strong trading activity in the stock. While the relative strength index confirms accelerating price momentum, it also flashes overbought conditions, increasing the chances of near-term price swings.

Let’s identify two overhead areas on Opendoor’s chart to watch if the buying frenzy continues and also point out support levels worth monitoring during potential pullbacks in the stock.

Overhead Areas to Watch

This first overhead area to watch lies at $5. This area on the chart, currently just above the downward sloping 200-week MA, may provide resistance near Monday’s high and a trendline that connects a range of corresponding price action on the chart stretching back to June 2022.

A decisive volume-backed breakout above this area could spark a rally toward $11. Tactical traders who anticipate follow-through buying may see this as a suitable location to lock in profits near a brief February 2022 countertrend high and a period of sideways drift in 2020.

Support Levels Worth Monitoring

During pullbacks in the stock, it’s initially worth monitoring the $1.80 support level. Retracements to this area could attract buying interest near the November 2023 trough and a range of consolidation on the chart between June and December last year.

Finally, the bulls’ failure to defend this key level could see Opendoor shares revisit lower support around 92 cents. Traders may look to place buy orders in this region near the stock’s prominent December 2022 swing low.

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As of the date this article was written, the author does not own any of the above securities.