OPEN Stock Posts Best Day In 6 Months, Volume Jumps 2x: Retail Eyes Elusive Breakout

• OPEN’s momentum has faded since its meme stock-driven rally last September.
• Stock has traded sideways for months and traders eye a breakout if the stock crosses its $5.50 resistance.
• OPEN was added to the Russell 3000 Index last month, triggering some buying activity.

Shares of Opendoor Technologies, Inc. surged nearly 11% on Thursday, marking their biggest one-day gain in nearly six months, and extended the climb in overnight trading. The rally, which came without a clear catalyst, rekindled hopes among retail traders of a major breakout after months of sideways trading in what was once a meme-stock favorite.

Opendoor rocketed from under $1 to more than $10 in just two months last year, drawing a flood of retail interest and putting the stock firmly in the spotlight. However, that momentum has faded since its September peak, with the shares repeatedly encountering stiff resistance around $5.50 for much of this year.

To be sure, OPEN stock is showing strength once again; the stock is up 26% from its recent low on June 23.

The momentum appears to be driven by a combination of continued buying following Opendoor’s inclusion in the Russell 3000 Index last month, growing optimism around CEO Kaz Nejatian’s turnaround strategy, and short-squeeze dynamics in the heavily shorted stock. 

OPEN Retail Sentiment Turns Bullish

On Stocktwits, retail sentiment for OPEN shifted to ‘extremely bullish’ as of late Thursday, from ‘neutral’ the previous day, with 24-hour message volume rising 220%.

Over 112 million OPEN shares traded hands on Thursday, more than twice the stock’s average trading volume, per Stocktwits data, raising hopes of a potential breakout.

Another wrote: “$OPEN Been holding $OPEN since last September. The insane volume and short pressure we are seeing right now foretell an unprecedented breakout alongside improving fundamentals. This is a rare, once-in-a-lifetime setup.” 

$OPEN finally got real volume behind it — 112M shares. Not just noise. Breakout stays alive as long as $5.60–$5.70 holds. That’s the line. Above it, shorts remain trapped and the blue-sky push can keep feeding. Lose that zone and the trade cools quickly. Simple setup, no need to dress it up,” said a trader.

OPEN’s Financials Remain Weak

As the meme-driven rally faced, the company's weak financial performance remains the biggest overhang. 

Opendoor's first-quarter revenue declined 38% year over year to $720 million – the top line has now shrunk sequentially for the past four quarters – Q1 net loss more than doubled to $173 million, according to results issued in early May.

OPEN stock is down 9% year-to-date.

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