Can $UBER Deliver us a breakout next week? – April 16, 2021
This is Scott with your Chart of the Day. I want to take a look at Uber ( NYSE: UBER ); I will be watching Uber ( NYSE: UBER ) into next week because Uber ( NYSE: UBER ) is in kind of an interesting spot here.
If I zoom out you can see Uber ( NYSE: UBER ) has had a lot of back and forth over the last couple of months. In fact, this has been a crazy trade because you think it’s going to break out and go and then all of the sudden it pulls back 20 percent and you have to end up buying it again. So it has kind of been a frustrating trade for me personally because I like trading smooth rides along the moving averages. I don’t like trading this kind of zigzag pattern.
I am going to be watching it into next week because if I zoom out to the weekly chart you can see it’s kind of coming into a little bit of a weekly downwards sloping trendline with a breakout on higher than average weekly volume and so that kind of catches my attention. It tells me that the stock could potentially setting up for a move higher.
Of course, we want to see a move through a clearly defined level of resistance coming on volume and we have that. You can see how this level acted as resistance in the middle of March and this week we revisited that area. I want to see a move through 61.50 coming on volume here on Uber ( NYSE: UBER ).
If it does pull back, if it does decide to retrace we can kind of draw a little bit of a trendline starting from here, and if it does end up retracing back to the downside, like down here, we would want to really see it kind of hold around this area. But like I said, it is kind of at an interesting spot here so it is definitely a stock I will be watching into next week, maybe it can deliver us a breakout, we’ll see.