Uber Rides High, But Death Cross Signals Loom: Bulls Unfazed By Technical Risks

Zinger Key Points

Uber's stock nears a Death Cross, but bullish sentiment persists as technicals show mixed signals.
Expanded safety features and countercyclical strength bolster Uber's long-term growth, despite economic concerns.
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Uber Technologies Inc. UBER stock has had an impressive run this year, up a stellar 25.37% year-to-date and a whopping 57.36% in the past year.

The ride-hailing giant continues to dominate its competition, but some technical indicators suggest a potential slowdown as the stock nears a Death Cross. Yet, bulls remain undeterred, betting on Uber's unique position in the market.

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Uber Expanding Safety Features

On the operational front, Uber has expanded its safety features, rolling out enhanced rider verification across the U.S. The new rider ID program and Record My Ride tool mark a shift in Uber's focus from riders to drivers, enhancing their safety while dealing with the ever-growing demand.

Drivers can now feel more secure knowing riders have passed additional verification steps, earning a “Verified” badge.

Uber’s scale and tech lead in a winner-take-all market, especially with partnerships like Waymo in the robotaxi space, giving the company a unique advantage. Plus, it has proven itself as a countercyclical business, with CEO Dara Khosrowshahi reaffirming during the latest earnings call that Uber can thrive even during economic downturns. However, concerns around interest rates and the potential disruption of robotaxis persist.

Uber Stock Nears A Death Cross

Technically, Uber's stock is sending mixed signals.

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Uber stock is trading above its eight, 20, and 50-day exponential moving averages, suggesting a bullish trend. Yet, as the stock nears a Death Cross, with the 50-day moving average converging toward the 200-day moving average, traders should exercise caution.

Chart created using Benzinga Pro

With Uber stock’s price hovering around $73.32, signals are mixed. The MACD (Moving Average Convergence/Divergence) indicator stands at 0.42, pointing to a bullish sentiment, while the RSI (Relative Strength Index) is neutral at 57.54 but heading north towards overbought conditions.

Traders should keep a close eye on the Bollinger Bands and momentum, but for now, bulls seem ready to ride the wave, trusting Uber's long-term growth potential.

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