Uber Technologies, Inc. (UBER) reported its fourth-quarter numbers after the close Thursday and the stock is trading solidly higher early Friday morning. The ride-sharing company reported 37% year-over-year revenue growth and gave strong guidance.
We looked at the charts of UBER at the beginning of the new year and wrote, "Aggressive traders could go long UBER here, risking a close below $27 while looking for a rally to the $36-$38 area during the first quarter of 2020." With prices trading around $39.50 Friday morning a fresh look at the charts is in order.
In the daily bar chart of UBER, below, we can see that prices have been in an uptrend from early November. Our price target was reached well ahead of my schedule and the rising On-Balance-Volume (OBV) line tells us the buyers of UBER have been more aggressive with heavier volume being transacted on days when the stock has closed higher.
The Moving Average Convergence Divergence (MACD) oscillator is above the zero line in positive territory but narrowed to a take profits sell signal. Friday's potential price gains could turn this indicator to the upside again.
In this weekly bar chart of UBER, below, we do not have a lot of price activity to work with but the indicators are all in a bullish alignment.
In this daily Point and Figure chart of UBER, below, we can imagine that prices will make a new high for the move up. A price target of $44.22 is already being projected.
Bottom-line strategy: Continue to hold longs recommended on Jan. 2 and raise sell stop protection to a close below $34 from below $27. The $44-$45 area is our next price target.