UBER ($UBER): Down like Gross Revenue, or Up like Eats?✨ We provide charts every day ✨
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Uber Rides got hammered from COVID, taking a $5 billion loss, but Uber Eats saw epic growth.
While Uber says business slowly coming back now that the lockdown is gradually ending, the trend is still technically bearish and we are running up against resistance.
Given the above, we are looking for a short setup.
Resource: finance.yahoo.com
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1. Fractal Trend is signaling a downtrend (Maroon bar color) on the 4 hour chart, and that means we can take short setups with our strategy.
2. With the strategy, we are looking to open a position after a rejection from either an orderblock plotted by Orderblock Mapping or an S/R level plotted by Directional Bias.
3. R1 looks like it will act as resistance and give us a solid entry, so we are waiting for a reaction there.
4. To the downside we have a number of levels that can act as support. Any of these levels could serve as exits or take profit levels depending on the reaction there.
5. Overall we don't want to be too aggressive shorting here, Uber had a bad quarter, but betting against the stock during a recovery from COVID as people get back to using ride sharing seems like a bad idea.
6. With the last point in mind, we have a relatively tight stop above R1 and will be exiting if Fractal Trend signals a trend change. Our target is S2 instead of a lower target as that should be a major level to retest on the way back down.
In other words, we have a nice setup for a short here, but we aren't trying to short Uber to zero or anything.
