Pennant are generally continuation Pattern. Sometimes, very rarely they work as inversion pattern The trading idea can be to sell at the current level and get out as per below two options: Option A - Bearish up to level 25.00 Option B - Bearish up to level 24.00
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Volume does not reflect the Technical pattern. it might be a warning for us traders.
I like this idea because I am bearish on UBER. But I see other stocks bouncing up out of this triangle pattern from earnings e.g. SNAP. Earnings could be key really, even if short lived because the shutdown hasn't come into the balance sheet just yet.
Mauriello
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@pinski121, Generally it is a continuation pattern, and since the market is bearish, I would expect to keep going bearish.
Some fundamental analysis, the world is still shut down, so I do not see any trend inversion.
On the other side UBER could change their business to accommodate the virus demands (perhaps delivering medicines for hospitals, I am just guessing, I do not know) and long term investment should be bullish, but not now, i would wait a month or two before buying reducing the margins and the risks
schery0581
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@Mauriello, It could be bullish but the risk on the upside is greater. If Uber couldnt make money on a booming economy why would they make money now? The propability of a retest of the low is higher in my opinion.
schery0581
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@pinski121, er is very dangerous. they can say anything to put the stock up
Mauriello
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@schery0581, I totally agree with you and this is why I am very careful with stocks (always a lot of fundamental analysis before investing in it).
youtube.com/watch?v=L5dCvTmjClM&feature=youtu.be