Stock of the Day: Uber

Today we focus on Uber, which is inching closer to a major technical breakdown that could trigger a long-term sell signal.

On the chart, we see a large Head & Shoulders formation, marked with a purple rectangle. This classic reversal pattern is a major red flag when it appears at the top of an extended uptrend — and that’s exactly the case here.

Compounding the pressure, the price is also breaking below a red uptrend line, adding to the bearish outlook.

However, the sell signal isn’t active yet — one key level still needs to give way.

• A confirmed break below the green neckline of the Head & Shoulders would validate the pattern and activate a strong signal to go short.

• Alternatively, if the price reclaims the blue resistance zone, that would invalidate the bearish setup and generate a buy signal, driven by a failed breakdown.

For now, all eyes are on the green neckline — the market’s next move around this level will define the direction.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-uber-1