Stock Of The Day: Is This The New Range For Uber?

Uber Technologies, Inc. (NYSE: UBER ) shares are consolidating on Thursday.

They dropped more than 5% after the company reported earnings yesterday.

A trading range has formed.

This is why Uber is the Stock of the Day.

As you can see on the chart below, the top of the range is the resistance around $75.

The bottom of the range is support around $66.

If the shares rally back to $75.00, there is a good chance there will be resistance there again.

This is because of remorseful or regretful buyers.

These are people who bought shares around $75 who have regretted doing so ever since.

Some of them have held onto their losing positions, but eventually exit them at breakeven if possible.

This means if Uber gets up to $75 again, they will place sell orders.

If there are enough of these orders, it will create resistance at the level again.

If the shares drop to $66, there is a good chance there will be support there again.

There are people who sold shares there and have regretted it ever since.

Many of them decided that if they can eventually do so, they will repurchase their shares at their selling price.

What This Means For Uber If the ride-sharing stock falls back to around $66, traders will place buy orders.

If there are enough of these orders, it will form support at the level again.

Many traders like to trade in ranges.

They buy near the bottom of the range and sell near the top.

Stocks rally off support when some of the buyers who created the support become anxious and impatient.

They know the sellers will go to whoever will pay them the highest price.

As a result, they increase their bid prices.

Other impatient buyers see this and do the same thing.

This results in a bidding war that will push the stock into an uptrend.

If Uber drops back to the lower end of this range, it could be a good time to buy.

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