Opendoor Technologies Inc. (OPEN) shares are showing modest movement Wednesday following news of an acquisition that expands the proptech company's mortgage capabilities. Here's what's driving the attention.
The Acquisition Details
The San Francisco-based property technology company has acquired Homebuyer.com, a mortgage lender, in a move announced late Tuesday by Opendoor chief growth officer Morgan Brown via a post on X.
As part of the deal, Homebuyer.com's founder and CEO Dan Green is joining Opendoor as the company's new director of mortgage growth. It's the latest in a string of executive changes for the company. Earlier this month, Lucas Matheson came aboard as president while Christy Schwartz stepped into the CFO role after Kaz Nejatian took over as CEO back in September.
Technical Picture Shows Caution
The technical setup for Opendoor shares tells a story of near-term bearish pressure despite impressive long-term gains. The stock is currently trading 10.2% below its 20-day simple moving average, 12.7% below its 50-day SMA, and 4.6% below its 100-day SMA. That's a pretty clear signal of struggle to gain upward momentum.
The Relative Strength Index sits at 41.97, landing in neutral territory. This suggests the stock isn't showing strong momentum in either direction, which tends to make traders cautious about potential price movements. Meanwhile, the MACD indicator has dipped below its signal line, adding another bearish signal to the mix.
The critical level to watch is $5.00, which represents key support. If the stock breaks below this threshold, it could open the door to further declines. Without a clearly defined resistance level above, Opendoor may struggle to find upward momentum until it can reclaim those higher moving averages.
Long-Term Gains Meet Short-Term Headwinds
Here's where things get interesting: over the past 12 months, Opendoor stock has surged an impressive 287.80%, demonstrating significant long-term potential. That remarkable performance stands in sharp contrast to the current technical setup, which suggests caution is warranted in the near term.
The stock is currently positioned at 55.2% of its 52-week range, meaning it's closer to its highs than its lows. That suggests there may still be room to move higher, but the current technical indicators point to the need for vigilance. Traders should watch for signs of either a reversal or continuation of the recent downtrend.
The key for traders will be monitoring that $5.00 support level and observing how the stock behaves around its moving averages. The bearish technical landscape suggests this isn't the time for reckless optimism, even with that impressive year-over-year performance.
Price Action: Opendoor Technologies shares were down 0.64% at $6.23 at the time of publication Wednesday.