After a rough patch from late 2021 through 2022, this year, the initial public offering (IPO) tried to make a comeback. Now, traders say 2024 could be the year this turnaround really comes. 👍
Below is a chart of the Renaissance IPO ETF ($IPO), which is up about 53% so far this year. But technical analysts and traders say that its recent breakout to roughly eighteen-month closing highs signals a critical trend change in prices. They argue that prices staying above the 35-37 range, which has previously served as an inflection point in the stock, would suggest momentum has shifted firmly to the upside. 🙃
But although recent IPOs are breaking out as a group, it’s important to note that investors are keeping a discerning eye. A look at the three most high-profile IPOs from the year’s second half shows the market remains optimistic about certain tech stocks like Arm Holdings but bearish on commoditized tech businesses like Instacart. 🕵️♂️
As always, we’ll have to wait and see if this turnaround truly takes place in 2024 or if traders’ optimism is misguided. 🤷