Uber Gapped Above Its August Pivot Targeting Its 200-Day Simple Moving Average. Here’s How To Trade The Stock Now.

Uber Technologies (UBER) has been helping consumers drive from place to place in more than 700 cities around the world. The stock has been in a bear market decline from a high of $64.05 set on February 11, 2021, to the low of $19.90 set on June 30, 2022. The stock popped above its monthly pivot for August at $22.68 as the month began. Shares of Uber appear headed towards its 200-day simple moving average at $33.34.

The weekly chart will be positive at the end of this week given a close above its five-week modified moving average at $24.49. There are bear market trends on the weekly chart that go back to February 2021 and April 2021.

Uber has a p/e ratio of 38.44%, but does not offer a dividend, according to Macrotrends. The stock beat earnings per share estimates for the last five quarters, but showed losses in May 2022, November 2021, and May 2021.

The Daily Chart for Uber

Shares of Uber had been above a golden cross until July 7, 2021, when the 50-day simple moving average moved below the 200-day simple moving average. The stock remains below this death cross. It’s above the 50-day SMA at $22.87 and below its 200-day SMA at $33.34.

There are four horizontal lines in the graph: At top is the annual risky level at $53.12. The second from the top is the quarterly risky level at $47.91. The third from the top is the semiannual risky level at $40.16. The lowest horizontal line is the monthly value level at $22.68.

The Weekly Chart for Uber

The weekly chart for Uber will be positive given a close on Friday above its five-week modified moving average at $24.53. The stock does not have a 200-week simple moving average or “reversion to the mean” because it began trading during the week of May 10, 2019 at $102.80. The 12x3x3 weekly slow stochastic reading is rising at 34.36. This reading was oversold during the week of July 22. Stochastics scale between 00.00 and 100.00 with a reading above 80.00 overbought and a reading below 20.00 oversold.

Trading Strategy: Buy Uber on weakness to its monthly value level at $22.68. Reduce holdings on strength to its semiannual risky level at $40.16.