Shares of Uber Technologies (UBER) have doubled in price the past 12 months -- and more gains may be seen in the months ahead. Meanwhile, The ridesharing and delivery company was rated a new "strong buy" Friday by President Capital Management.
Let's check out the charts and indicators.
In this daily bar chart of UBER, below, I can see that the shares have been tracking an upward sloping channel the past 12 months. Prices are up near the upper boundary of the channel (draw an uptrend first and then a trendline parallel to the uptrend) and we could see prices pullback or trade sideways from here. UBER is still above the rising 50-day moving average line and above the rising 200-day moving average line which was tested successfully in late April.
The On-Balance-Volume (OBV) line did not make a new high for the move up in April and May when prices were strong. This is a minor bearish divergence but I still need to point it out. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but in a correction.
In the weekly Japanese candlestick chart of UBER, below, I see a mixed picture. The shares are in an uptrend and trade above the rising 40-week moving average line. The most recent candles are showing me potential weakness with small real bodies and an upper shadow above $40.
The weekly OBV line shows me strength from last June. The MACD oscillator is in a bullish alignment above the zero line.
In this daily Point and Figure chart of UBER, below, I can see a potential upside price target in the $56 area.
In this weekly Point and Figure chart of UBER, below, I see that the software is projecting a potential price target in the $61 area.
Bottom-line strategy: The charts of UBER are mixed right now -- bullish Point and Figure targets but subtle signs that prices could correct in the days ahead. Traders who are long UBER from our February 9 recommendation could consider taking some profits here. Longer-term, renewed gains could be seen.
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