Swing Trade Idea (UBER) – June 27, 2023
OptionsPlay’s bearish trade for Tuesday, June 27th is Uber Technologies Inc. (UBER). UBER is part of the Technology Sector, which has performed at -3.32% over the last week, with UBER overperforming relative to its sector at 2.07% over the same period.
UBER traded into a long-term area of resistance at $45 and is expected to pullback from this level as it is currently in an overbought condition. The Technology Sector also traded into the top of a trendline and is already pulling back. As this is a counter-trend trade, we expect UBER to follow suit and trade lower over the duration of this trade, with the next support at around $40.
As a stop loss, if UBER were to trade above $47 for multiple days, this would invalidate our analysis and suggest cutting losses on the trade. We also recommend cutting losses on this options trade if the value of the vertical spread moves below $0.81.
