What's Up With Uber's Stock? A Technical Analysis
Uber Technologies Inc (NYSE:UBER) closed up 3% after the company announced March bookings reached the highest level in the company's history. Also, CEO Dara Khosrowshahi said on CNBC the company plans to look into cannabis delivery once federal prohibition ends.
Although Uber’s stock had been trading in a bull flag pattern for eight trading sessions, the bookings news helped the stock break trend and make a bullish move north. The most bullish, and bearish, moves on stocks often come when technical patterns align with either positive or negative news.
The Uber Chart: Uber’s stock gapped up 2.4%, opening at $59.05. On April 5, the eight-day exponential moving average (EMA) crossed above the 21-day EMA and Uber’s stock is currently trading above both which is bullish. Uber closed under resistance at the $62 mark and put in an inverted hammer candlestick on the daily.
The long upper wick may indicate the stock needs a few days to digest the gap up and ideally, bulls would like to see Uber’s stock fill the gap with consolidation before another leg up. If Uber stock can jump up above resistance at $62, it has room to trade back in its all-time high range of around $64.
Bears would like to see Uber’s stock fall back below the gap and retrace to and lose support at $56.02.
UBER Price Action: Shares of Uber closed at $59.44.
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.