• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Stocks

Lyft Tumbles to Our Price Target: Here's Its Likely Next Destination

The share reached our target Wednesday with a dramatic downside price gap.
By BRUCE KAMICH
May 04, 2022 | 02:29 PM EDT
Stocks quotes in this article: LYFT

Back on August 24 we reviewed the charts of Lyft ( LYFT)  and wrote that, "Shares of LYFT look destined to break their late January lows and fall further in the weeks ahead. This potential top pattern projects a tentative price target in the $25-$20 area, taking the height of the pattern and projecting it lower. Avoid the long side."
 
Well, the shares just reached our price target Wednesday with a dramatic downside price gap, so let's check on the charts again. 
 
In the daily bar chart of LYFT, below, we can see that prices moved lower the past several months but gapped lower this Wednesday to reach our top pattern price target (see above). LYFT is below the declining 50-day moving average line and below the 200-day line which also has a negative slope.
 
Trading volume is heavy as traders vote with their feet and the On-Balance-Volume (OBV) line remains pointed lower. The Moving Average Convergence Divergence (MACD) oscillator is bearish. 
 
 
In the weekly Japanese candlestick chart of LYFT, below, we see a bearish picture. Prices are in a longer-term downtrend.
 
The weekly OBV line is weak and the MACD oscillator is bearish. 
 
 
 
In this daily Point and Figure chart of LYFT, below, we can see the big decline with the price gap filled in. 
 
 
In this weekly Point and Figure chart of LYFT, below, we used a five-box reversal filter. Here the software gives us a $16-$15 price target. 
 
 
 
Bottom-line strategy: Wednesday's price gap may turn out to be an exhaustion gap but it is too early to draw that conclusion. For now the gap is bearish and the trends are still bearish. Continue to avoid the long side and resist the urge to catch a falling knife.
 
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Earnings | Investing | Stocks | Technical Analysis | Transportation

More from Stocks

Stay Guarded Amid Rally's Rotation

James "Rev Shark" DePorre
May 23, 2022 4:41 PM EDT

Stocks spin, and that makes the market picture rather murky.

Dare I Recommend a Retail Name Like American Eagle Outfitters?

Bruce Kamich
May 23, 2022 3:15 PM EDT

Let's check out the charts.

Gravity Is Pulling on Apple

Mark Sebastian
May 23, 2022 2:32 PM EDT

Here's where I see AAPL going and how to play it.

Look for General Motors Shares to Restart Their Uptrend

Bruce Kamich
May 23, 2022 2:10 PM EDT

Why aggressive traders could get behind the GM wheel again.

Alibaba Is Sold out on the Downside

Bruce Kamich
May 23, 2022 1:26 PM EDT

China at a bearish extreme is an opportunity.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 02:24 PM EDT PAUL PRICE

    An Interesting Chart

    I'm betting heavily that stocks will be way up aga...
  • 10:10 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    "Market Timing for Dummies"
  • 01:44 PM EDT STEPHEN GUILFOYLE

    Stocks Under $10 Portfolio

    We're making a series of trades here.
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login