After a March all-time low (ATL) under $20 a share, UBER took a strong bounce back to the $30 range and looks to be in a consolidation pattern.
Special note: There is still much room to the downside that may need to be cleared out. However, the scale and diversity of Uber's product line and growth strategy do have potential. Should UBER post a profitable quarter, this would take off.
Strategy for a price move down:
Suggestion to set buy ladders at the support lines and Fibonacci retracement. Weight buy orders more heavily to the lower ranges .5 and .786, etc.
Strategy for a price move up:
Resistance exists around the $38-40 mark. If we see a breakout to these levels with strong volume candles, we would call this confirmation, take a big order, set our stop loss at $35, and take small profits at $50-55 while remaining in the stock. Use this strategy to further reduce your average cost.
Elliot wave theory suggests that if we breakout we would be in a wave 3 of 5, which tends to be the longest breakout. Given the potential momentum for a name like UBER we would likely hold in that future scenario.
Should either of the above 2 scenarios materialize, we can confirm our strategies and regroup to map out the next potential move up. It
I presently give UBER a HOLD rating, with a lean to BUY if only to hold a small position to take advantage of either move.
NOTE: ALWAYS TAKE A STOP LOSS IF YOU ARE TRADING A SHORT TIME RANGE WITH LIMITED FUNDS.
Disclaimer: I am not a professional and am self-taught. My charts are made for my own education to improve my trading strategies over time. I am always open to feedback or being pointed in the direction of resources to up my game. Thank you!
Special note: There is still much room to the downside that may need to be cleared out. However, the scale and diversity of Uber's product line and growth strategy do have potential. Should UBER post a profitable quarter, this would take off.
Strategy for a price move down:
Suggestion to set buy ladders at the support lines and Fibonacci retracement. Weight buy orders more heavily to the lower ranges .5 and .786, etc.
Strategy for a price move up:
Resistance exists around the $38-40 mark. If we see a breakout to these levels with strong volume candles, we would call this confirmation, take a big order, set our stop loss at $35, and take small profits at $50-55 while remaining in the stock. Use this strategy to further reduce your average cost.
Elliot wave theory suggests that if we breakout we would be in a wave 3 of 5, which tends to be the longest breakout. Given the potential momentum for a name like UBER we would likely hold in that future scenario.
Should either of the above 2 scenarios materialize, we can confirm our strategies and regroup to map out the next potential move up. It
I presently give UBER a HOLD rating, with a lean to BUY if only to hold a small position to take advantage of either move.
NOTE: ALWAYS TAKE A STOP LOSS IF YOU ARE TRADING A SHORT TIME RANGE WITH LIMITED FUNDS.
Disclaimer: I am not a professional and am self-taught. My charts are made for my own education to improve my trading strategies over time. I am always open to feedback or being pointed in the direction of resources to up my game. Thank you!
UPSIDE CASE: Reward potential at the 1.618 extension is noted on the chart at $67.88. Whether this is part of the wave 3 move or the wave 5 will depend on market conditions, though the fundamentals don't look THAT good. Still, one could argue that the herd isn't leaving the tech bubble yet and we are just seeing an overdue short-term correction (though that case is unlikely and most are not arguing for it).
DOWNSIDE CASE: Note the RSI. There is a HIGH POTENTIAL for BULL TRAP on the stock in the short term. More analysis should be done on volume patterns and trading channels.
Please excuse my first post. I am learning to use this platform. Thank you!