Uber drives lower after losing legal battle

Uber Technologies trades around 5% lower at the time of writing after losing a high court battle in the UK.

Downtrend 3

Uber technologies trades around 5% lower at the time of writing after losing a high court battle in the UK.

As a result, around 70,000 drivers will be classified as employees, entitled to a minimum wage and holiday pay.

The news has unnerved investors who are questioning Uber’s wider business model.

Uber’s costs will increase in the UK, although it seems unlikely that the ride hailing company will absorb the rise in costs and a fare increase is almost. In California, under a similar decision the rise in cost was passed on the customer.

The stocks rallied to an all time high of $64 February 11. Since then the bullish momentum has lost steam.

The price is currently testing a key level at $56.00, the confluence of the 20 sma & 50 sma and the lower band of the ascending channel. 

A move below here could see support at $51 the March low then $47 the yearly low come into play.

Any recovery would need to overcome $61 the March high in order to target $64.00 the all time high.

More from Uber

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account