Ron said there has been some good news in the trucking industry of late. Over the past month, spot rates have fallen 20% from their highs. Rates are still well above their pre-pandemic levels, but any relief is a welcome sign, he said.
Uber Freight now has 1.5 million drivers on its platform, Ron said, and the company is on track to assist with $18 billion of freight this year.
When asked about autonomous vehicles, Ron said driverless trucks are still a long way away, and even when they do arrive they will take long-haul routes that truckers don't want so human drivers can deliver more local routes and stay closer to their families.
Let's check out the charts of UBER again. In my Jan. 11 review I wrote, "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."
In this daily bar chart of UBER, below, we can see that UBER never approached $49 and continued to slip lower. UBER declined to new lows in early March and made a rebound rally to cross above the now-bottomed 50-day moving average line. Prices are still well below the declining 200-day moving average line. The On-Balance-Volume (OBV) shows a long decline to a low in March and only a limited rise in recent weeks. Traders have been more aggressive sellers for many months. The Moving Average Convergence Divergence (MACD) oscillator recently crossed above the zero line, but this buy signal may not last long as the oscillator is narrowing.
In this weekly Japanese candlestick chart of UBER, below, we can see a bullish engulfing pattern and a couple lower shadows at the beginning of March, but the latest candle is bearish (red) and that may mean the end of the recovery. The slope of the 40-week moving average line is negative (bearish) and the OBV line shows a short-term rise following a longer-term decline. The MACD oscillator is trying to signal a cover shorts buy signal but it is well below the zero line.
In this daily Point and Figure chart of UBER, below, we can see a downside price target in the $34 area.
In this weekly Point and Figure chart of UBER, below, a lower target in the $22 is projected.
Bottom line strategy: The Dow Jones Transportation Average (DJT) has turned lower, so I am not sure the freight division of UBER is going to contribute in a big way to UBER's potential success. Continue to avoid the long side of UBER. Further declines are likely.