Shares of Uber Technologies, Inc. and Lyft, Inc. may be about to move, but for different reasons.
Uber has dropped to support. At support levels, there is a large concentration of buyers looking to pay the same price for shares. This is why sell-offs end when they reach them.
When the support breaks, meaning that the stock trades below it, it shows that the investors who formed it have left the market. With this demand out of the way, sellers will need to accept lower prices. This could form a new downtrend.
Lyft has rallied to resistance, which is the opposite situation. At resistance levels, there is a large concentration of sellers looking to sell at the same price. This is why rallies end when they reach them.
When the resistance breaks, meaning that the stock trades above it, it shows that the investors who formed it have left the market. With this supply out of the way, buyers will need to pay higher prices. This could form a new uptrend.
