Is Uber Forming A Double Bottom?

Shares of Uber Technologies, Inc. UBER may be forming a classic double bottom pattern. And if that’s the case, it could be a good time to buy them.

A double bottom pattern forms on a chart when a stock revisits a level that it has previously rallied off of. In this case, it’s $44. The level was support. There was enough demand to absorb all of the supply.

When the stock trends lower and reaches this level a second time, there is a good chance there is still a significant demand for it. If so, shares could rally again and complete the pattern.