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.