Uber is about to break out of its channel on the weekly chart.
The price is sitting close to its all-time Point of Control (POC).
In general, when a stock is at the POC, a rapid move tends to follow.
Moreover, if the price reaches the upper trend line again, it will be the sixth touch.
Stocks usually break out on the fourth touch.
Considering these facts and that the RSI is in the middle range, plus that the market is highly volatile, a big move is expected (up or down).
This could be a breakout to the upside, or it could be a false breakout if the overall market sells off again.
A market seloff would lead to a rapid downward move.
Here's how I play it.
I play the 21. Oct. 22-32.5 straddle (32.5 call, 32.5 put).
So I can benefit from a sudden shift in either direction.
Resistance: 32.64, 38.63, 46.94
Support: 29.86, 23.23
PS.
You can also spot an inverse "Head and Shoulders" pattern, which is also bullish.
The price is sitting close to its all-time Point of Control (POC).
In general, when a stock is at the POC, a rapid move tends to follow.
Moreover, if the price reaches the upper trend line again, it will be the sixth touch.
Stocks usually break out on the fourth touch.
Considering these facts and that the RSI is in the middle range, plus that the market is highly volatile, a big move is expected (up or down).
This could be a breakout to the upside, or it could be a false breakout if the overall market sells off again.
A market seloff would lead to a rapid downward move.
Here's how I play it.
I play the 21. Oct. 22-32.5 straddle (32.5 call, 32.5 put).
So I can benefit from a sudden shift in either direction.
Resistance: 32.64, 38.63, 46.94
Support: 29.86, 23.23
PS.
You can also spot an inverse "Head and Shoulders" pattern, which is also bullish.
