Disclaimer: Not financial advice.
A breakout and squeeze as the last earnings established a trend reversal that is now breaking out of a small parallel channel.
There's some good space in the next 24 bars/35 days to earnings to reach the next level of resistance around $39-$40, about 17% upside. The current lines of support seem to say there should be about 6% downside. This is about 2.8x Reward to Risk.
Some explanations/descriptions of the lines and drawings-
Additionally, I am using the Fisher Transform, Stochastic, and SMI Ergodic for confirmation. It appears to me that we will see a blow-off in about 5 days time.
I always like to take Bar Patterns from previous scenarios of a chart and lay them down to see if they match up with the lines I have as Channels, Trends, Resistance, Support, etc. I think these match up nice for a Bull and Bear scenario.
This does NOT mean I think this is exactly, bar for bar, how I see things playing out. I think Bar Patterns are underrated as they probably come off as pretending to have a crystal ball, but I think their best use is to mentally prepare yourself for how you would trade things if they reached an area.. would you take profits at highs, buy the dip, etc. I also think to some degree that posting a chart without a forecast is the equivalent of shrugging your shoulders. If your supports and resistances are true, there should be price action reacting to them.
Best of luck. Please let me know what feedback you have on UBER and/or my idea.
A breakout and squeeze as the last earnings established a trend reversal that is now breaking out of a small parallel channel.
There's some good space in the next 24 bars/35 days to earnings to reach the next level of resistance around $39-$40, about 17% upside. The current lines of support seem to say there should be about 6% downside. This is about 2.8x Reward to Risk.
Some explanations/descriptions of the lines and drawings-
- We have been in a small, parallel channel since about November 5th, 2019, the day following last Earnings Report. Today we look likely to close above the top of this channel.
- Closing above this top should enter a new, larger parallel channel. I see the top of this channel intercepting a couple of other trend lines- the dotted black line was a major resistance established following the August 8th, 2019 ER. The solid red line is a resistance line from the All Time Highs/small head and shoulders in June and July.
- --- The confluence of these 3 lines makes a very strong case for a short-medium term ceiling.
Additionally, I am using the Fisher Transform, Stochastic, and SMI Ergodic for confirmation. It appears to me that we will see a blow-off in about 5 days time.
I always like to take Bar Patterns from previous scenarios of a chart and lay them down to see if they match up with the lines I have as Channels, Trends, Resistance, Support, etc. I think these match up nice for a Bull and Bear scenario.
This does NOT mean I think this is exactly, bar for bar, how I see things playing out. I think Bar Patterns are underrated as they probably come off as pretending to have a crystal ball, but I think their best use is to mentally prepare yourself for how you would trade things if they reached an area.. would you take profits at highs, buy the dip, etc. I also think to some degree that posting a chart without a forecast is the equivalent of shrugging your shoulders. If your supports and resistances are true, there should be price action reacting to them.
Best of luck. Please let me know what feedback you have on UBER and/or my idea.