Opendoor stock forms rare pattern, pointing to a ~70% surge to $10

Opendoor stock price was highly volatile this week as Donald Trump started to focus on the affordability issue, especially on the housing market. OPEN initially dropped after his proposal to ban institutional investors from buying residential homes. 

Technicals suggest that the stock may rebound soon a rare bullish pattern has formed. It may also benefit from its high short interest of over 12%.

Opendoor stock in focus as Trump moves to ban institutional buying

In a major announcement this week, Trump said that he would move to ban institutional investors from buying residential homes. That move led to a sharp decline in Blackstone stock as the company is one of the biggest players in the industry. 

It also affected Opendoor Technologies, a company that focuses on house flipping. Its platform allows users to sell their homes in a few steps, and others to buy homes. 

Still, analysts believe that the company’s business will not be affected significantly. For one, unlike Blackstone, Opendoor does not run a rental business. Instead, it focuses on buying homes, improving them, and then selling. It has also embraced the role of agents in its operations as it seeks to have an asset-light model over time.