Uber Technologies Inc. (NYSE:UBER) announced that it is working with New York City Taxis in order to meet the surging demand. The announcement comes at a time when the stock has been under pressure.
As technology stocks gained, Uber has been declining, pointing to waning investor confidence in the stock’s valuation. As the company starts recording growth in demand, the stock may once again start gaining.
Uber trading just above the $30 key support
Source – TradingView
Uber at $34 is trading slightly above the key support level of $30. The price started reversing the pattern as soon as it hit the support. The support level coincides with the RSI 30 indicator of oversold security.
Over the last two weeks, price movements have shown the stock-building momentum to rise above 30. We think that the bullish momentum will be maintained into the foreseeable future, pushing the price up.
The stock will maintain a valuation between $30 and $48 for the next few weeks. For the patient investor, Uber at $34 is, therefore, a buy-and-hold. We project that upward price traction will be influenced by two factors.
First, the price will be supported by growth in the business. Second, the price will be propped up by the general market movements which signal recovery from the recent downward pressure.
Uber is a buy-and-hold at a price of $34. The price is close to a key support level of $30. The stock can be expected to gain towards a high of $48 in the coming few weeks. Price movements will benefit the patient investor.
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