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. ðÂ
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. ð
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. ðĩïļââïļ
As always, we’ll have to wait and see if this turnaround truly takes place in 2024 or if traders’ optimism is misguided. ðĪ·