In 2019, Uber posted losses of $1.4 billion, but in 2020, those losses declined to $873 million. Fast forward to today, and Uber is practically breaking even.
Let's check on the charts of UBER to see if this fundamental improvement can be seen in the X's and O's.
In the daily bar chart of UBER, below, we see a mixed picture. Prices are still in a downtrend from February and trade below the declining 200-day moving average line. On the plus side, prices made a small (emphasis on small) double bottom in early December and have recovered to trade above the 50-day line but stop short of the 200-day line.
The daily On-Balance-Volume (OBV) line made a double bottom of sorts in September and December. The OBV line will be more impressive if it can move above its October peak. The trend-following Moving Average Convergence Divergence (MACD) oscillator crossed above the zero line for a new buy signal but it has since weakened.
In the weekly Japanese candlestick chart of UBER, below, we do not have our "complete" display of three years of price history. We can see that the shares struggled early in 2021 in the $60 area. Prices turned lower but have found some buying interest (support) around $35 but lower shadows are not part of the picture. On a recent bounce to the underside of the declining 40-week moving average line we can see an upper shadow telling us that traders rejected those prices.
The OBV line shows us a choppy but slightly lower pattern. The MACD oscillator is below the zero line but trying to make a cover shorts buy signal.
In this daily Point and Figure chart of UBER, below, we can see a downside price target in the $37 area.
In this weekly Point and Figure chart of UBER, below, we can see a surprising (at least for me) price target of $61.
Bottom-line strategy: In our Sept. 22 review we recommended that, "UBER could pull back to the $43.50 area in the near-term and that could be a place to probe the long side. I would trade cautiously and be a "wait and see" investor." Today, I would continue to trade cautiously and wait for strength above $49 before becoming an aggressive buyer.