Account
New to ADSS? Open an
account now to get started.
Already have an account?
Add funds to your ADSS account
Account
New to ADSS? Open an
account now to get started.
Add funds to your ADSS account
Asset Watch
Tuesday, December 18, 2024
It’s been a wild ride for Uber recently, as an influx of bad news has battered the stock. From reports of autonomous vehicle competition to General Motors cutting funding, and whispers of deregulation, the negative headlines kept coming for the ridesharing giant.
But is Uber a case where volatility breeds opportunity?
Evercore ISI named Uber one of its top picks for 2025, with a price target of $120. On Dec. 12, Analyst Mark Mahaney wrote:
“The internet sector may still contain 1-2 stocks that can materially re-rate and compound in 2025…. We continue to believe that Uber, as the ultimate ridesharing demand aggregator, will be a net beneficiary of robotaxis.”
So he expects the stock to more than double from the Dec. 13 close.
Because Uber is a highly volatile stock, it’s often prudent to gauge support from a long-term perspective. When isolating the monthly chart, the horizontal white lines highlight how Uber has strong support in the $56 to $60 area.
The latter represents the intramonth highs set during the 2021 bull market, while the former is nearer to the 2021 closing high and the August 2024 ‘flash crash’ low. All in all, short-sellers may look to exit their bearish bets in this zone.
Another solid support anchor is the 20-month moving average. The metric stands near $61 as of the Dec. 13 close, and it’s important to remember that false intramonth breakouts and breakdowns are common.
In other words, with more than two weeks left in December, there is still time for Uber to recoup and close above $61.
If risk management is your top priority, it may be wise to enter a position only if Uber recoups the 20-month MA. A close above $61 would solidify MA support and support from the 2021 intramonth highs, which is a powerful combination.
If you prefer to be aggressive, buying the stock now and positioning in advance for a monthly comeback may be appropriate.
ADSS
8th floor, CI Tower
Corniche Road
PO Box 93894
Abu Dhabi
United Arab Emirates
Trading Services
ts@adss.com
+971 2 657 2414
Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.
ADS Securities L.L.C – S.P.C (“ADSS”), a limited liability company – sole proprietorship company incorporated under United Arab Emirates law. Registered under Commercial License No.1190047. ADS Securities L.L.C S.P.C is regulated and authorised in the UAE by the Capital Market Authority (CMA) under Category 1 License No.305027 (Trading Broker, Trading and Clearing Broker, Trading Broker in the International Markets, Trading Broker of OTC Derivatives and Currencies in the Spot Market, Financial Products Dealer) and Category 5 License No.20200000217 (Introduction). Registered Office: 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.
The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.
ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.
