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.
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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.
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