Uber Shares Drop 27% from Yearly Highs, Is It Time To Buy?

Uber has seen its stock price slide 27% from its yearly highs, now trading at approximately $62.77 per share. This decline has brought the stock to a critical technical support level that investors and traders are closely watching as the year comes to an end.

Key Technical Levels to Watch on Uber’s Chart

On the weekly chart, Uber’s price has reached a long-standing trendline that has been intact since January. This trendline, now acting as a key support level, will be critical for determining the stock’s next direction. A decisive break and close below $61 could signal bearish momentum and open the door to further selling pressure.

However, this potential downside may be short-lived, as the stock has additional support at the 100-day moving average (100MA), which lies around the $56–$57 range. If the price falls below this zone, a deeper decline is possible, with the next major support located at the 200-day moving average (200MA) near $47–$48.

Potential for a Near-Term Bounce?

The current price level may attract buyers looking to capitalise on the stock's proximity to this critical technical support. This could lead to a short-term bounce in Uber’s share price. However, any rebound may be limited due to bearish technical indicators, which suggest selling pressure may persist until the stock stabilises.

Bullish Momentum Requires a Move Above $70

For Uber to regain bullish momentum, the stock would need to climb back above $70, a level that could restore investor confidence and signal a potential shift back to a positive trend. Until then, caution is advised.

Technical Indicators Suggest Bearish Momentum

Key technical indicators currently paint a bearish picture for Uber’s stock:

• MACD (Moving Average Convergence Divergence): The MACD is trending downward, signalling weakening momentum.
• RSI (Relative Strength Index): The RSI is falling and currently sits at 38, indicating that the stock is approaching oversold conditions but still has room to fall further.
• Volume Expansion: Increasing trading volume during the decline suggests heightened selling pressure.

 

Outlook for Uber Stock: Bearish or Bullish?

Uber’s stock remains at a crossroads, with traders monitoring the $61 support level closely. If this level holds, it could provide a foundation for a recovery. However, a break below this point could lead to further downside, testing the $56–$57 range and potentially the $47–$48 zone.

For investors, the technical picture suggests a cautious approach until the stock either stabilises or breaks above key resistance levels like $70, which would signal a return to bullish momentum.