UBER closes above its opening price after recovering from early selling pressure
Uber Technologies, Inc. (UBER) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
UBER finished the week 7.27% higher at 34.83 after gaining $0.57 (1.66%) today, significantly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 34.83 marks the highest recorded closing price since February 25th. Trading up to $0.58 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (UBER as at May 22, 2020):
Friday's trading range has been $1.36 (3.98%), that's slightly below the last trading month's daily average range of $1.71. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for UBER. Prices continued to consolidate within a tight trading range between 33.47 and 35.01 where it has been caught now for the last three trading days.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Last Engulfing Top Pattern.
The market ran into sellers again today around 34.93 for the third trading day in a row after having found sellers at 35.01 in the previous session and at 34.77 two days ago. The last time this happened on May 15th, UBER actually gained 3.54% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 35.01 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 33.47 where further sell stops could get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Its common bearish interpretation has been confirmed for Uber. Out of 4 times, UBER closed lower 75.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 50.00% with an average market move of 0.09%.