Jim Cramer told his Mad Money viewers Tuesday night that when the selling subsides over the next two days, it will be time to buy some of your favorite stocks. For Cramer, that means shares of Adobe Systems (ADBE) , along with Airbnb (ABNB) , Uber Technologies (UBER) and DoorDash (DASH) .
We just covered ADBE here and ABNB here so let's see what our UBER "technical app" is telling us.
In the daily bar chart of UBER, below, we can see that the shares skidded lower from May to September. However, prices have suddenly gapped higher. UBER is trading back above the 50-day average line but still below the declining 200-day line.
The trading volume has recently surged and the On-Balance-Volume (OBV) line made a quick and sharp turn higher. The 12-day price momentum study showed slowing momentum from May to September and that preceded the pop to the upside.
In the weekly Japanese candlestick chart of UBER, below, we can see a mixed picture. The shares were in a downtrend until a large bullish engulfing pattern. Prices are still below the declining 40-week moving average line.
The weekly OBV line is still in an intermediate-term decline. The 12-week price momentum study has been flat for several months as prices have declined. This is a bullish divergence and foreshadowed the current rally.
In this daily Point and Figure chart of UBER, below, we can see a potential upside price target in the $60 area but we can also see a "chunk" of potential overhead chart resistance.
In this weekly Point and Figure chart of UBER, below, we can see a potential upside price target in the $61 area -- not much above the daily target of $60.
Bottom-line strategy: In
our April 14 review of UBER we were bullish and wrote that "Aggressive traders could go long UBER, or add to existing longs at current levels or on strength above $61.03. Use $52 on all sell stops." Traders should have stopped out quickly in early May.
What to do now?
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.
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