Uber Technologies Inc. (UBER) is the Stock of the Day on Real Money. UBER is trading higher in early action Tuesday despite traders reading about the IRS probing the company's 2013, 2014 tax returns. The analyst quiet period expires today so we are likely to see a number of recommendations from the sell-side which might influence some traders.
Let's round out our analysis with a couple of charts keeping in mind we don't have much price history to work with.
In the daily Japanese candlestick chart, below, we can see two subtle clues about buyers and sellers. UBER established a wide range in its first two days of trading, which was followed by a three-day rebound. Since the middle of May prices have traded sideways, but we can see lower shadows below $40. Lower shadows on a daily chart mean that buyers have come in to push the stock higher that day (upper shadows suggest that sellers have come in on intra-day rallies).
The volume pattern was neutral until recently where we can see an increase in activity. The daily On-Balance-Volume (OBV) line shows some recent improvement and the fast stochastic indicator has turned up from a moderately oversold position.
In this limited Point and Figure chart of UBER, below, an upside price target of $46 is being indicated.
Bottom-line strategy: Keeping in mind that we do not have a lot of price history to work with, UBER now looks capable of a modest rally to the $46 area. Seasoned traders could buy strength above $42 risking below $39 looking for a rally to $46 -- not the best risk/reward setup mind you.