As the tech sector increasingly showcases resilience in a volatile market, Uber Technologies, Inc.‘s (NYSE:UBER) recent stock performance highlights a significant shift in investor confidence.
Shares of Uber consolidated on Wednesday, after the stock broke out above a key resistance level on Monday.
Uber is showing strong momentum. There is a good chance it continues to move higher. Our trading team has made it our Stock of the Day.
Most analysts consider the market from three different time horizons. They look at the short-term, intermediate-term, and long-term. If the stock is moving higher in all three, it is displaying extreme strength.
For example, a stock may move from $10 to $100 in a year, but then in two weeks fall back to $90. This stock would be in a long-term uptrend, but a short-term downtrend. It wouldn't have the same strength or momentum as a stock that was trending higher in the short term and long term.
Analysts use moving average prices to analyze trends. A simple moving average price is the average of the prior closing prices of the time period under consideration.
Read Also: 3 Big Surprises Just Hit The Markets – Here’s How I’m Trading Them
As you can see on the chart, Uber is above its 10-day moving average. This means it is in a short-term uptrend.
It is also above the 50-day moving average. This means it is also trending higher in the intermediate term. And being above the 100-day average shows that it also remains in a long-term uptrend.
Uber is showing strength in all three of the trends… short-term, intermediate term, and long-term. This means there is a good chance the stock continues to move higher.
Uber also broke the resistance around the $93.55 level.
Resistance is a large group of investors and traders who are looking to sell their shares at, or close to the same price. Rallies tend to end when they hit resistance.
If the buyers eventually overpower the sellers and push the price above the resistance, it is called a breakout.
This is a bullish dynamic. It shows that the people who created the resistance have left the market. They have finished or canceled their orders.
With these sellers out of the way and with its strong momentum, there is a good chance Uber keeps moving higher.
Read Next:
Photo: Shutterstock
