In 2024, Uber Technologies (UBER) was frequently inquired about by investors, but the stock underperformed despite investor enthusiasm. However, as 2025 began, UBER emerged as a top performer in the S&P 500, marking a significant turnaround. This shift is noteworthy because, while major indices faced downturns, UBER experienced an oversold upturn. A year-long trading range for UBER suggests a corrective phase has led to oversold conditions. DeMARK Indicators indicated downside exhaustion in December, historically a reliable signal, enhancing the positive outlook from the weekly stochastic oscillator. Additionally, improved momentum is reflected in the weekly MACD histogram. Key support is identified in the $60-$61 range, crucial for maintaining bullish trends, while resistance lies near previous highs at $82. A loss of long-term momentum is indicated by a bearish crossover in the monthly MACD. Though UBER has absorbed long-term overbought conditions, the monthly stochastics suggest caution. Given these technical indicators, UBER looks poised for outperformance in Q1 2025, as its relative strength ratio against the S&P 500 shows oversold trends, warranting careful monitoring of investment strategies.
