Uber Technologies (UBER) has rallied strongly since the end of December after retesting its October low. What should traders and investors do now
Let's check the charts and indicators.
In the daily bar chart of UBER, below, I can finally point to some technical improvements. The shares are now trading above the 50-day moving average line and its slope has turned positive. The slope of the slower-to-react 200-day moving average line is bottoming.
The trading volume has soared higher in recent days. The On-Balance-Volume (OBV) line has risen from late December as buyers of UBER have become more aggressive. The Moving Average Convergence Divergence (MACD) oscillator crossed above the zero line in early January for an outright purchase signal.
In the weekly Japanese candlestick chart of UBER, below, I see a more positive picture. The shares are in a new uptrend (higher lows and higher highs). UBER is trading above the rising 40-week moving average line.
A new high on the weekly OBV line helps to confirm the price gains. The MACD oscillator is now crossing the zero line.
In this daily Point and Figure of UBER, below, I can see an upside price target in the $42 area.
In this weekly Point and Figure chart of UBER, below, a price target of $64 is shown.
Bottom-line strategy: Traders who might want to go long UBER should wait for a pullback to $34 or better. Risk to $30. Our first price target is $42 for now.
