Vital days for shares often are related to large quantity, main assist/resistance, and a check of management. As I have a look at Upwork, Inc. (UPWK), it is verify, verify, and verify. Earlier than I have a look at UPWK individually, let me present you what we sometimes see with web shares (which UPWK is part of) throughout the month of January:
All through this secular bull market (since 2013), the DJUSNS has produced January beneficial properties two-thirds of the time. The common January efficiency over this era is 4.2%, which solely trails the month of July. The underside line is that web shares love the month of January. Outdoors of the opening day of 2024, shares like META, NFLX, and PINS have already began the 12 months off fairly sturdy. This solely provides to the chances of a UPWK rally if we see a transparent breakout later right this moment. And if we fail right this moment, I would not write UPWK off. Quite, it is prone to simply be a delay earlier than stronger worth motion arrives.
Let us take a look at the UPWK chart:
Yesterday, UPWK closed at 15.66, which eclipsed the prior excessive candle physique of 15.57. That slight breakout was additionally accompanied by the heaviest each day quantity in two months. In my view, right this moment is the day for UPWK. We gapped barely decrease on the opening bell to fifteen.64, however surged in very early motion to 16.36, UPWK’s highest stage since reaching 16.39 on September 16, 2022. Quantity has very heavy out of the gate this morning. However UPWK has since reversed, dropping over a buck from Monday’s excessive. So the query right this moment is, “Does UPWK strengthen this afternoon so as to add a second straight 16-month excessive shut or does a capturing star candle (or bearish engulfing candle) and false breakout print?” The reply to that query will doubtless decide UPWK’s short-term worth path. I really like the clear-cut bottoming course of in play right here, as evidenced by reverse head & shoulders sample, however in the end, UPWK wants to interrupt that neckline resistance with some momentum. Take a look at this potential H&S bottoming sample:
This might flip into a giant bullish afternoon reversal and breakout OR a depressing failed breakout. Nevertheless it’s these kinds of days that I wish to pay shut consideration to as a dealer.
Lastly, S&P 500 efficiency throughout the month of January has a protracted historical past of offering us wonderful clues as to the place the U.S. inventory market is heading later within the 12 months. If you would like to see the impression {that a} sturdy January has on the stability of the 12 months, and you are not already an EB Digest subscriber, merely CLICK HERE to supply your title and electronic mail handle. The EB Digest is completely FREE, no bank card info is required, and chances are you’ll unsubscribe at any time.
Glad buying and selling!
Tom
Tom Bowley is the Chief Market Strategist of EarningsBeats.com, an organization offering a analysis and academic platform for each funding professionals and particular person traders. Tom writes a complete Every day Market Report (DMR), offering steerage to EB.com members daily that the inventory market is open. Tom has contributed technical experience right here at StockCharts.com since 2006 and has a elementary background in public accounting as nicely, mixing a singular ability set to method the U.S. inventory market.
