Uber stock has been in a strong bullish trend since the start of May 2023 after the release of Quarter One financial results. The stock surged from the low of $29.50 and created an annual high of $49.49.
The bears had a strong presence near $50 which halted the bullish move and was also the result of the release of second-quarter results. On August 1, 2023, Uber released the second quarterly report and was successful in beating the earnings per share estimates but missed the revenue estimates.
Uber Technologies’ Revenue Missed
The consensus estimated the revenue to be $9.339 Billion it turned out to be $9.23 billion, a surprise of $108.82 Million. This induced a negative sentiment in the market and Uber stock price fell to form a support near $43.30.
However, Uber Technology has a revenue growth of 14% year over year to $9.23 Billion. The company expects gross booking of $34 to $35 Billion and adjusted EBITDA of $0.975 Billion to $1.025 Billion for the third quarter.
The chief financial officer of Uber Technologies, Nelson Chai, in the last week, sold a quarter of its holding in the ride-hailing company. Nelson dumped nearly about 100,000 shares, worth $4.5 Million.
The stock price is currently stuck in a narrow consolidation zone ranging between $43.30 and $45.30. If bulls can push prices above $45.30, there is a possibility for the price to head toward the next resistance level and an annual high of $49.49.
On the other hand, if the price falls below the $42 major support level, it might melt toward $39.
Will Uber Stock Rise Back to $50?
The stock price trades above 50,100 and 200-day exponential moving averages but has negatively crossed the 20-day EMA, suggesting a rise in bearish momentum which supports the price action.
Chaikin money flow (CMF) score has dropped below the 0 mark and stands at -0.16 indicating weakness and capital outflow in the market. The relative strength index has dropped to 45.26 hovering near the neutral zone, indicating slight bearish pressure.
UBER stock price faced rejection from the 20-day SMA of Bollinger and is headed toward the lower band which resides at $42.37.
Conclusion
The market structure and price action of Uber Technologies have turned bearish after the retracement due to the revenue estimate for the second quarter. Technical parameters also support the rise in bearish momentum. The stock price needs to rise above $45.30 to regain bullish momentum and potentially shatter the annual high of $49.49.
Technical Levels
- Major support: $42 and $39
- Major resistance: $45.30 and $49
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/08/26/uber-technologies-uber-stock-will-sell-off-continue/