Uber Is Delivering Bullish and Bearish Signals

Uber Technologies ( UBER) is displaying some charts that are positive while others are bearish. Technical analysis is not cut and dried, so let’s get into the subtleties of the charts of the ridesharing and delivery company.  

In this daily bar chart of UBER, below, we can see that prices made a small bottom in May-June-July and then rallied into August/September. UBER has pulled back into October after three clear failures to break out above the declining 200-day moving average line. The On-Balance-Volume (OBV) line improved into August and then moved sideways, suggesting a balance between bulls and bears. The Moving Average Convergence Divergence (MACD) oscillator has slipped below the zero line for an outright sell signal. 
 
In this weekly Japanese candlestick chart of UBER, below, we get a different perspective. We can see some upper shadows in August and September as prices failed around the 40-week average line. The most recent candle shows a fairly large lower shadow below $25, telling us that traders rejected the lows in a positive move. The weekly OBV line shows more strength than the daily line and the MACD oscillator is weakening toward a new sell signal. 

In this first Point and Figure chart of UBER, below, we used daily price data and here the chart suggests the $18 area as a potential price target. 
In this second Point and Figure chart of UBER, below, we used weekly price data and here the chart shows the same $18 price objective. 
Bottom line strategy: I have never considered technical analysis formulaic but rather an acquired skill from years of chart watching (10,000 hours, for example) and a balancing of time frames and indicators. Taken altogether, I would avoid the long side of UBER for now.

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