Looking back into 2024, Uber Technologies (UBER) is one of our top stocks to watch. Despite appearing to have investor buy-in, the stock failed to deliver strong returns. However, in the first few days of 2025, UBER has entered the top 10 performers of the S&P 500 and may be about to usher in a new phase of outperformance. The shift is noteworthy as the major indexes posted overbought declines, which contrasted with UBER’s oversold rise. Uber’s weekly bar chart shows a year-long trading range, with a correction near the end of the year that has produced oversold conditions. In December, the DeMARK indicator showed downside exhaustion, as indicated by the green arrow. Historically, signals from the same model have been timely, so we believe this is a reinforcement of the oversold upside on the weekly Stochastic Oscillator. From a medium-term perspective, the downward momentum has eased, which is evident in the weekly MACD bar chart. This supports a bigger rally for Uber within its trading range. The range is capped by strong support in the $60-61 area (defined in part by the Zhou Cloud model (shaded area on the chart)) and resistance well above current levels (the previous high near $82). Support has been bolstered by former resistance in 2021, where UBER has gained a foothold since breaking out in early 2024. UBER has suffered long-term losses. This range allows UBER to absorb long-term overbought conditions, but the monthly stochastics remain low, requiring stop-loss discipline. We understand the appeal of laggard stocks, especially when the market’s leadership appears to be shaky. Regardless of a major correction, UBER looks set to outperform in the first quarter, as its relative strength ratio against the S&P 500 itself is showing signs of being oversold. —Katie Stockton and Will Tamplin Get free access to Fairlead Strategies research here. 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This major tech laggard could see a breakthrough in 2025, according to chart | Real Time Headlines
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