Uber Technologies (UBER) recently reported that their bookings have reached the highest level since the pandemic.
We last reviewed the charts and indicators of UBER on March 17, and wrote that "Traders who are still long UBER should consider raising sell stops to $50 from $47. If prices restart the uptrend the next price target is the $81 area."
Prices have stayed above our recommended $50 sell stop, so let's check in again.
In this updated daily bar chart of UBER, below, we can see that prices look like they are emerging/breaking out of an equilateral triangle formation. Prices look like they have been making higher lows and lower highs since late January. Triangles typically break out 2/3 to 3/4 through the pattern, and not at the apex.
UBER looks to be moving on schedule. The slopes of the 50-day moving average line and the 200-day moving average line are positive. The On-Balance-Volume (OBV) line has been slowly creeping higher from November, telling me that buyers of UBER have been quietly more aggressive. The 12-day price momentum study in the lower panel shows lower highs over the past three months, but I think that it is pretty much okay.
In this weekly Japanese candlestick chart of UBER, below, we see a positive picture. The daily bar chart shows a narrowing trading pattern, but this chart shows higher lows from the middle of January -- and roughly equal highs for a bullish or ascending triangle formation. The weekly OBV line shows a positive trend and the Moving Average Convergence Divergence (MACD) oscillator is narrowing towards a fresh buy signal.
In this daily Point and Figure chart of UBER, below, we can see an upside price target of $69. A trade at $61.03 will be a triple-top breakout in my opinion.
Bottom line strategy: Aggressive traders could go long UBER, or add to existing longs at current levels or on strength above $61.03. Use $52 on all sell stops. $69 is our first price target.
