Latest Uber stock price forecast

Whether you believe Uber is the future, or hugely overrated, this is what the technical analysts think.

Since modern day taxi firm Uber Technologies Inc (NYSE:UBER) has only been trading a few weeks, any big picture update risks being spectacularly wrong, but we're more than willing to give it a go due to the share prices movements recently.

Our immediate concern was the drop to $36 following the IPO. In a normal share with realistic trading history, this would imply extreme danger in the event it falls below such a level. However, we are inclined to suspect this was simply a ploy by the market to shake down some initial traders.

Since launch, the price has topped out at $46, with the result that we now require it to trade above $46.50 to become quite interesting.

Exceeding such a trigger level allows growth to an initial $47.20. If exceeded, our secondary target calculates at a more pleasing $50.90, a point where we'd normally anticipate some hesitation or stutters.

Source: TradingView Past performance is not a guide to future performance

However, it will prove worthwhile to watch for any signs of the price being manipulated or 'gapped upward' at the open each day.

When a price continually opens above the previous day's closing price, it sends a pretty confident signal the market wants Uber stock higher.

In the last week, we've already seen a couple of instances of this behaviour which, while small, confirm our thoughts.

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To be honest, we already think Uber intends to hit the $50 level. It needs to reverse below $41 to cancel the prospect.

Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.