What do you do when you’re in a rush to your next destination?
Do you try flagging for a taxi at the roadside or reach out to your phone and hail for a private hire vehicle?
The introduction of private hire vehicles has changed the landscape of transportation and delivery.
Its impact is evident based on the number of private hire vehicles versus taxis roaming the streets.
Before we dive into my view on Uber, let’s have a look at last week’s swing trading opportunity: Builders FirstSource, Inc (BLDR).
BLDR has flown 20% last week and a pullback could be on its way.
A swing trading opportunity could appear after its pullback, hence I encourage you to keep your eyes on this stock.
Ok, shall we turn our attention back to Uber?
Performance Of US Stock Market vs Uber (UBER)
Have the shares of Uber consistently outperformed the S&P 500?
The share performance of Uber was stronger than the S&P 500 till mid-Mar 2023 and again from early May 2023.
This is a positive sign as you’ll want the shares of Uber to bring you a return that’s larger than the market’s.
Did you also notice that while the S&P 500 has been going sideways for a month, Uber’s share price is in a new uptrend?
Knowing that the share price of Uber is trending higher, let’s analyze it further.
How Explosive Is Uber (UBER)?
A quick glance and you’ll notice that Uber’s shares have been explosive.
The shares of Uber have exploded north of 20% for 3 times, with the largest up move measuring 27%!
For a company with a market capitalization of $76b to enjoy such huge moves, it’s impressive.
Now, we know that the shares of Uber are worth a swing trade.
But, should you buy its shares now?
Key Price Levels
To know whether you should buy Uber’s shares now, you’ll want to uncover its key price levels.
These key price levels will illuminate potential turning points, the same way as support and resistance do.
I’ve identified an immediate support zone at ~$37.50, and a lower support zone at ~$35.
Given that the share price of Uber has exploded 26.9% in just under 2 weeks, I think that a deep pullback could happen soon.
Its share price could fall to $35 before rising again.
Therefore, I’ll be watching the price area of $35 closely.
The Strategy You Can Use To Swing Trade Uber (UBER)
After comparing the performance of UBER with the broader US stock market, determining whether UBER has experienced explosive up moves, and identifying its key price levels, it’s time to talk strategy.
To stay in business, you must know your entry, profit taking, and stop loss levels in every trading strategy. Yes, trading is a business, which means that your strategy must be well thought out.
Using The Art of Explosive Profits (AEP) framework, I’d like to see UBER pullback to $35 before considering an entry for a swing trade.
As the name implies, you’ll be looking to consistently catch an explosive move in a short period of time.
Instead of relying on news and hearsay, the AEP course will teach you how to screen stocks for swing trading like UBER.
You’ll also learn how to read charts and identify stocks that are about to make a big move.
Finally, you’ll learn how to identify the optimal entry, stop loss, and take profit levels to capitalize on these explosive moves (in a safe manner, of course)!
Can you apply the AEP framework to provide you with a side income while working full time?
Yes, you can!
Come, have a look at the AEP framework and incorporate this explosive trading strategy to your arsenal to capitalize on more swing trading opportunities.
Why Is Swing Trading UBER Worth It?
Source: uber.com
Uber has taken the world by storm and I’m certain that we’ve benefited from its services.
When compared to the S&P 500, Uber is beating the market and its shares are rising while the overall market is going sideways.
In addition, the up moves of Uber’s shares are capable of being explosive, rising as much as 27%!
These strong reasons qualify Uber as a great stock to swing trade as your money will be working hard for you.
However, the time for a swing trade isn’t here yet.
While we wait for the breakout and pullback, please keep in mind that I’m not a financial advisor, so please treat this as edutainment and conduct your own research.
Lastly, all images are from pexels.com, pixabay.com, sectorspdrs.com, tradingview.com, and unsplash.com.
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