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  1. Home
  2. / Investing

Lyft Barrels Downhill After Latest Results: Wait Till You See the Charts

The stock had already reversed to a down column with a bearish price target.
By BRUCE KAMICH
Feb 10, 2023 | 08:07 AM EST
Stocks quotes in this article: LYFT

Shares of Lyft Inc. (LYFT) were cut to a "hold" rating by a sell-side firm Friday on the heels of the ride-sharing company guiding March-quarter revenue expectations below expectations. Other sell-side firms have also cut their ratings of LYFT Friday. 

Let's check the position of the charts and indicators for the stock.

In the daily bar chart of LYFT, below, I see that prices rallied in January but stalled in February ahead of Thursday evening's earnings report. Shares of LYFT are trading around $11 in pre-market trading activity Friday so we are likely to experience a large gap to the downside at the market open. This should put prices well below the 50-day and 200-day moving average lines.
 
The trading volume did not expand much in January so the rally was on shaky legs. The daily On-Balance-Volume (OBV) line moved up from November but looks to have turned lower in recent days. The Moving Average Convergence Divergence (MACD) is crossing to the downside for a take profit sell signal.
 
 
In the weekly Japanese candlestick chart of LYFT, below, I can see an upper shadow on the most recent candle telling me that traders had rejected the highs. The indicators are not bullish and we should see a large red (bearish) candle when this chart is updated after Friday's close.
 
 
In this daily Point and Figure chart of LYFT, below, I can see that prices had already reversed to a down column with a bearish price target.
 
 
Bottom-line strategy: Shares of LYFT are going to be under selling pressure Friday. Avoid the long side.
 
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TAGS: Earnings | Investing | Technical Analysis | Transportation | Analyst Actions | Consumer Discretionary

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