Uber Technologies (UBER) is the "Stock of the Day" at Real Money after posting a $5.2 billion loss for Q2. UBER was trading about 3% lower in pre-market activity. Media reports say that things were "weighed down by heavy competition in Latin America and elsewhere, as well as a large expense related to its initial public offering". Ah, fundamentals. Let's see what the charts and indicators might look like this morning.
UBER is a relatively recent new issue or IPO so like most IPO's I have a data problem - trying to get a "read" on a stock with little price history. Still let's see what we can glean from the bar chart and X's and O's.
In this daily bar chart of UBER, below, we can see some wide daily swings in May when this much anticipated company went public. Prices settled down in June and July, but we can see a decline in late July and early August perhaps driven by traders reducing positions ahead of the Q2 figures.
The slope of the 20-day moving average line is negative but the daily On-Balance-Volume (OBV) line turned up recently and the Moving Average Convergence Divergence (MACD) oscillator has narrowed towards a possible cover shorts signal.
The $43-$46 area is likely to represent resistance and the $39-$38 area may give us some minor support. Again, not a lot of information to work with here.
In this Point and Figure chart of UBER, below, we can see the activity through Thursday's close. An upside price target of $50 is indicated. A trade at $38.23 will likely weaken the chart.
Bottom line strategy: Over the years I have heard of various strategies to trade or handicap IPO's. I hear of people starting with who are the underwriters and their track record, how much was it oversubscribed, how much volume has traded from day one, checking on the appetite of institutions, and on and on.
For me it gets back to how prices behave. I suspect UBER will retreat today but probably close off its lows. Beyond that I have no clues right now.