Uber Is Ready to Ride Higher

The stock is performing better, despite the backdrop of a negative story -- here's what the charts are suggesting now.
Stocks quotes in this article: UBER

The share price of Uber Technologies (UBER) has been bottoming the past three months, despite negative news and selling by insiders no longer restricted by the lockup period. I always find it interesting when the news and the price action don't match.

Here we have an example of a stock that is performing better, despite the backdrop of a negative story. Traders must be looking forward several months. Let's see what the charts are suggesting now. 

In this daily bar chart of UBER, below, we can see the bottoming action the past three months. Prices have moved sideways around the $30 level with a decline to $26 and a rally to $34. Prices have recently moved above the sideways-to-higher 20-day and 50-day moving average lines. Trading volume has been heavy the past two months, which can indicate a change in ownership from weak hands to stronger ones. The daily On-Balance-Volume (OBV) line has strengthened since early November, which suggests that buyers of UBER have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator moved above the zero-line late last month and is now in bullish territory.  

 
 
In this Point and Figure chart of UBER, below, a potential upside price target in the $35-$36 area is projected.  
 
Bottom line strategy: Aggressive traders could go long UBER here, risking a close below $27 while looking for a rally to the $36-$38 during the first quarter of 2020.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Technical Analysis | Technology | Transportation

More from Investing

As Race to Chase Strength Fizzles, Here's the Question

James "Rev Shark" DePorre

Hopes for a 'V'-shaped recovery were high at first Tuesday morning, but now we must ask: Does the intraday reversal signal resumed selling momentum or a healthy pause to digest Monday's bounce?

Is This the Start of a Bull Market or a False Breakout?

Maleeha Bengali

Buying the market here is about pricing the economic recovery and the end of financial damage being priced into these stocks.

Ready, Set, Go: Netflix Is Poised for a Key Upside Breakout

Bruce Kamich

NFLX is oh so close.

Want to Bash Airline Bailouts? Well, You Helped Create This Monster

Timothy Collins

You've seen the rage over how much money these companies seeking bailouts have spent on buybacks and dividends -- but let's look at this from an aerial view.

UnitedHealth Group Is Leading the Way on the Upside

Bruce Kamich

UNH has moved up strongly from its March nadir so traders and investors should approach from the long side.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight