UBER stock: buy or sell
Jan 27th, 2021
UBER stock brief
- Uber stock dropped -4.37% to close at $51.92 on the stock market today, after 4 consecutive sessions in red.
- The stock is configuring an uptrend pattern since August 2020, when it bottomed at $28.48. This uptrend marked a 82.30% gain
- Uber Technologies, Inc. develops and operates proprietary technology applications primarily in the United States, Canada, Latin America, Europe, the Middle East, Africa, and the Asia Pacific.
Should I buy Uber stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $UBER stock a buy?
In the current situation of Uber there is just one buy setup eligible:
Uptrend buy setup
Uber stock is in an uptrend since in August 2020 that so far marked a gorgeous 82.00% gain. Price marked a local bottom in this uptrend at $49.65 on Monday, and since then it bounced off a 4.57%. Now, it's just 15.62% away from breaking out over its last top and resume the uptrend. The new entry point is therefore at $60.03. If you decide to enter this trade, the suggested stop loss is at $54.03
|Buy setup||Buy point||Stop loss||Risk|
|Uptrend buy setup||$60.03||$54.03||10.00%|
Should I sell Uber stock?
How to know when is it time to sell Uber?. Similarly to when we have to buy shares, determining when is the best time to sell is not a fickle decision, and we must adhere our own trading style. We like very simple strategies to guide us on when is the best moment to sell a stock. Be aware that these strategies should not be used for selling short Uber stock
As a rule of thumb, you should never mantain a trade that leads to losses greater than those expected upon purchase. When to sell your stock should always be ruled by the stop-loss (automatic or manual)
Is it time to sell Uber stock?
In the current situation of Uber there is not any eligible sell setup, so Uber stock holders with operations in profit can keep their positions
Price lost SMA50 level
Uber stock gained 48.92% in a month during the time it was above the 50-d MA. Nevertheless that uptrend could have come to an end, or show signs of exhaustion, since the price lost that moving average level on Tuesday. For mid-term investors who profited from the gains during the period the price was above the average, this signal should be a wake-up call and a reason to sell the shares and get their returns
In the last 30 days, 3 brokerage ratings were published for Uber. General sentiment is bullish, with 3 out of 3 posting positive forecasts
|Jan 4th, 2021|
|Jan 7th, 2021|
|BTIG Research|| |
|Jan 11th, 2021|
Uber stock analysis
Since in August 2020, Uber has been printing an uptrend that so far marked a gorgeous 82.30%. The price line shows higher peaks and higher lows, and along the way gave some buy points for those who wanted to enter. Latest pullback was on Monday, when price bounced at $49.65. Currently, it trades in a consolidation between its last top ($60.03) and its last bottom ($49.65)
Supports and resistances
The current resistances are:
The current supports are:
Since the price surpassed the upper band on January 13, the price corrected downwards by 13.29%
Relative strength index
The RSI dropped below the overbought level of 70 in mid-December after just crossing to the overbough zone for 1 day (weak signal). The RSI value on Tuesday was 44.59. Since RSI lost the overbought zone, Uber stock tanked a 4.47%
Uber stock price history
Uber IPO was on May 10th, 2019 at $42.00 per share1. Since then, UBER stock has risen by 23.62%, with an average of 23.62% per year. An investment of thousand dollars on May 2019 would be valued $1,236.19 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Uber stock
Nobody knows how much a share will be priced tomorrow. Banks and financial organisations publish their analysis forecasting how a stock will performance in the future.
The following table shows the price predictions posted by brokerage institutions over the last 30 days. Again, these predictions are not direct recommendations for individual traders and should not be followed blindly.
The average price target for Uber stock calculated from the table below is $66.67. Uber closed at $51.92 on Tuesday, so the target price is predicting a growth by 28.41%.
|Brokerage firm||Price target|
|Jan 4th, 2021|
|Oppenheimer||$47.00 → $62.00|
|Jan 7th, 2021|
|BTIG Research||$65.00 → $70.00|
|Jan 11th, 2021|
|Morgan Stanley||$49.00 → $68.00|
Earnings and financials
Last November, Uber ($UBER) had the quarterly financial event and released the report. UBER posted earnings of $-0.62 per share on revenue of $3.1 billion. The market estimate was $-0.65 per share on revenue of $3.2 billion.Same quarter one year ago, reported EPS was $-0.68, so recently reported EPS is an increase of 8.82%. Looking at revenues, figures tanked a -17.94% compared to $38.1B same quarter last year.
UBER ($UBER) is presenting earnings report on Thursday next week. Wall Street analysts predict of $-0.55, that is a 11.29% more than previous quarter.
Disclaimer:The comments written in this post are personal and not recommendations for you to buy or sell stocks. The author of this text does not have an understanding of the individual situations of the reader, his or her own financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are expressed for informational motives only
|Tuesday, January 26th, 2021|
|Day range||$51.53 - $55.52|
|Average true range||$3.48|
|50d mov avg||$52.51|
|100d mov avg||$44.52|
|200d mov avg||$38.17|
|Earnings date||February 4th, 2021|