UBER has been hot recently after making a bottom base and squeezing out shorts last month. For the past few days UBER has been consolidating in a tight pennant pattern and is looking for another leg up. I am expecting UBER to reach the IPO price as some point soon. I decided to go long UBER despite the not so optimal market conditions for longs. I do believe we are at a short term bottom for this current market pullback and a small bounce is due. In order to control risk, I reduced my initial size to 1/3rd and may choose to scale in more in the future if market conditions improve.
Entry - 37.42
Stop Loss - 36.95
Target - 42.00
Entry - 37.42
Stop Loss - 36.95
Target - 42.00
Comment:
I got in when I did due to the pattern on the 30m timeframe. UBER has been consolidating right below the breakout zone on the lower timeframe. This is usually a sign of an incoming breakout. What is nice about this setup is that I can have a very tight risk on this trade.
Comment:
In recent past, I have always heard stories from friends and family about the failures of UBER - poor customer service, increased pricing, and high debt. During conversations when the topic of UBER comes up, it is always agreed that that "Shit company is gonna go bankrupt one day". Well, I left the ego and opinion at home and went long UBER yesterday. I think this is a good display of how much I am developing as a trader. I am able to drop all bias and follow what the price action is telling me.
Trade closed: stop reached:
I moved stop loss to breakeven yesterday and got stopped out today. I realize my stop loss was too tight too early. UBER just started to breakout. UBER looks to be testing breakout zone.