Uber Technologies Inc. (UBER) has been stuck in a sideways trading range since early December. UBER did make a new high in February, but prices failed to follow-through on the upside. In our last review of UBER on Jan. 12, we wrote that, "The charts and indicators of UBER remain bullish and pointed higher. Trade it from the long side risking to $47. $62 and the round number of $100 are the potential price objectives." Now that our $62 price target has been reached we should reexamine the charts.
In this updated daily bar chart of UBER, below, we can see the sideways price action noted above. Prices have been finding buying interest around $50. Prices have crisscrossed the 50-day moving average line. The 200-day moving average line has a positive slope and intersects around $42.50. The On-Balance-Volume (OBV) line has been largely stalled since November and suggests a balance between buyers and sellers. The Moving Average Convergence Divergence (MACD) oscillator is hugging the zero line now which tells us there is little trend strength right now.
In this weekly Japanese candlestick chart of UBER, below, we can see a mixed picture. There is a noticeable upper shadow above $60 telling us that traders rejected the strength above $60. The slope of the 40-week moving average line is positive. The weekly OBV line shows a saw tooth move up since late November. The MACD oscillator has been rolling over in recent months.
In this daily Point and Figure chart of UBER, below, we can see a potential upside price target in the $81 area. A trade at $50 could weaken this chart.
Bottom line strategy: 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.
