For his second "Executive Decision" segment of Thursday's Mad Money program, Jim Cramer sat down with Dara Khosrowshahi, CEO of Uber Technologies (UBER) .
When asked about the changing expectations on Wall Street, Khosrowshahi explained that we live in complicated times, and during complicated times, investors demand more than just growth at any cost. They want growth, but also earnings at the same time. That's why Uber has made changes to keep the trust of shareholders.
Khosrowshahi added that Uber is ideally suited for recessions, because it has low fixed costs and the diversity in its businesses means that mobility and delivery aren't typically down at the same time. Uber's size and scale will help it weather any economic storm, Khosrowshahi said.
Let's check the app and the charts of UBER.
In this daily bar chart of UBER, below, we can see that prices have been traveling lower the past 12 months. Rallies towards the underside of the declining 200-day moving average line have all failed. The price of UBER has made a low in early May and the indicators have too. Prices have firmed towards the underside of the declining 50-day moving average line.
The On-Balance-Volume (OBV) line has crept higher after a decline from October. The Moving Average Convergence Divergence (MACD) oscillator has crossed to the upside for a cover shorts buy signal.
In this weekly Japanese candlestick chart of UBER, below, we can see some lower shadows on the candles in May. Trading volume was heavy at the May nadir. The weekly OBV line shows recent improvement. The MACD oscillator has narrowed towards a cover shorts buy signal.
In this daily Point and Figure chart of UBER, below, we can see a nearby price target in the $28 area.
In this weekly Point and Figure chart of UBER, below, we can see a potential $36 price target.
Bottom line strategy: The charts of UBER are trying to rebase. In the short run we could bounce to $28 or retest the $23 area. Optimistically, a recovery rally to the $36 area is possible if the broad market has a bear market rally.
