Could Lyft Be Seeing A Reversal?

Lyft Inc. LYFT shares are trading higher Tuesday, moving up toward a resistance level within a channel in which the stock has been trading. Lyft is scheduled to report earnings after the bell today. The analyst consensus earnings per share forecast for the quarter is a loss of 48 cents, compared to a loss of $1.01 per share in the same quarter last year.

Lyft closed up 5.37% at $41.20 on Tuesday.

Lyft Daily Chart Analysis

• Shares have been trending downward for the past year and have recently bounced off the channel support. The stock is beginning to form higher lows and if it continues, shares of Lyft could see a long term reversal.
• The stock trades above the 50-day moving average (green) but below the 200-day moving average (blue). This indicates is in a period of consolidation. The 50-day moving average may hold as an area of support, while the 200-day moving average may hold as an area of resistance.
• The Relative Strength Index (RSI) has been climbing the past few weeks and now sits at 54 on the indicator. This shows that the stock is now seeing more buying pressure than selling pressure. If the RSI continues to rise, the stock could start to see a reversal.

What’s Next For Lyft?

Lyft is starting to push higher in the middle of a downward trend and showing signs it could be reversing. For the stock to confirm the reversal, it would need to cross above the resistance of the channel and consolidate above it.

Bullish traders are looking to see a cross above the resistance, as well as the 200-day moving average.

Bearish traders want to see the stock begin to start trending lower once again and see the RSI dip back below the middle line.

Photo: Courtesy of Stock Catalog on Flickr