Uber Stock Could See A Reversal In The Coming Weeks

Uber Technologies Inc (NYSE: UBER) shares are trading higher Tuesday after CEO Dara Khosrowshahi's participation in a discussion hosted by UBS. Khosrowshahi reportedly said he is confident Uber will come in at the top half of its guidance for the fourth quarter.

Uber was up 4.77% at $37.45 at time of publication Tuesday.

See Also: Why Uber Shares Are Rising Today

Uber Daily Chart Analysis

• The stock looks to be bouncing off support in what technical traders call a falling wedge pattern. The stock is falling with narrowing highs and lows and could see a reversal in time if the pattern resistance can be broken.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment, and each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) has been fading lower for the past few months and now sits at 41 on the indicator. This shows more and more sellers have entered into the stock throughout the past few months. If the selling continues the stock could enter into the oversold area where the selling pressure heavily outweighs the buying pressure.

What’s Next For Uber?

Uber continues to fall inside the falling wedge pattern and needs to cross above the resistance level to see a possible reversal. Bulls are looking to see this resistance level break and for the stock to be able to consolidate above it for a time for this reversal to happen. Bears are looking to see the stock continue to trade in the pattern and when the stock reaches the end of the pattern, break below the support.

Photo: Courtesy of Uber