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
Thursday, November 7, 2024
America has chosen and Donald Trump is back in the White House – and the news saw global stock markets largely remain in uptrends. And with economic growth mostly buoyant and central banks embarking on rate-cutting cycles, the fundamental backdrop provides a solid foundation for the bulls.
As a result, could Uber hit a new record high in the months ahead?
Despite investors’ negative reaction to the recent earnings print, JPMorgan analyst Doug Anmuth maintained his overweight rating and $95 price target. He wrote on Oct. 31:
“We believe Uber can continue to grow the delivery category profitably as it looks to improve network efficiencies, scales advertising, and strengthens marketing and incentive optimization.”
Thus, with the company totaling more than 25 million Uber One members, its network effect could be on full display over the medium term.
While Uber suffered mightily on Oct. 31, the optimists were eager to buy the dip. If you analyse the red candle second-furthest to the right, you can see that Uber closed well off the lows, as support materialised near the $70 area.
The main support levels for Uber are the 40 and 50-week moving averages. Over the last six-plus months, the 40-week MA (the blue line) has been a reliable floor and the 50-week MA (the yellow line) provided backup on Oct. 31.
Furthermore, both lines are rising, which indicates a healthy long-term uptrend.
Although it may be a while before Uber hits $95, the bulls are in the driver’s seat when the stock trades above its moving averages. Consequently, a long position is currently justified, and a prudent approach is to place your stop-loss order slightly below the 50-week MA to avoid a false breakdown.
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 LLC – S.P.C (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates under First Category: Dealing in Securities and Fifth category: Arrangement and advice (Introduction). ADSS is a Limited Liability Company – Sole Proprietorship Company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 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.