Don’t Overlook LYFT

Irresponsible Comparison:

• Last week I did hear some mention regarding some semiconductor names REPORTING earnings. The main story was if AMD can not record a solid earnings reaction then how in the world will INTC. Well, we all know how that worked out. While many were anticipating a nice move for AMD it slumped 11% on 10/30, while INTC jumped 8% on 11/1 (we looked at that name in our Monday Tech note here). This week we will see how LYFT works out, but I am hearing similar things, as if UBER flounders like it did losing 9% on 10/31, Lyft surely will decline. Be careful with that comparison. Below is how we looked at LYFT in our 10/25 Technology Note and it will be interesting to see how it responds this Wednesday after the CLOSE.

Stock Needs a "Lyft":

• In the ride-sharing space, there are just two names that dominate the conversation. UBER gets the vast majority of chatter and that name is now filling a gap from the 10/10 session and is a quick 10% off from the 52-week highs made on 10/11 after the TSLA Robotaxi event. Perhaps the strength with TSLA earnings was the reason behind its softness early on Thursday. The other side of the theme here is the daily chart below of LYFT. It has carved out a bullish inverse head and shoulders pattern just below the 200-day SMA and on its MONTHLY chart it has been trading between the rough ranges of the round 10-20 numbers since plunging below 20 in May 2022. There was a bearish shooting star and engulfing candles at 20 in August 2022 and this April, and bullish engulfing candle and hammer in November 2023 and August respectively. JPM owns 6.5% of the shares outstanding reported earlier this year and it was David Teppers top buy in Q2. This one can have room to run if it breaks above 14.25. 

Peeking at the MONTHLY:

• One should always try to zoom out and look at longer time frames to see if it corroborates the sanguine view. Here we see how the last 2 times a bullish MONTHLY candle developed at the very round 10 number the stock responded handsomely. First, was the engulfing candle last November PRICE doubled, and now will the stock respond similarly into year-end after this August's hammer? November is looking for a third consecutive MONTHLY advance and incredibly the stock has not recorded one in the last 5 years. Notice how the very round 20-figure once support in 2020 has turned into resistance in 2022 and this March and April.

Selloff Opportunity:

• This is not to say UBER should be overlooked. Quite the contrary as the daily chart below suggests. I think as long as this remains above the very round 70 number, which aligns with the 200-day SMA, one can be long right here. If last week's lows hold one can add to it above a double bottom pivot of 80.18. The WEEKLY time frame looks attractive too here with a first touch of the rising 50 WEEK SMA after a double bottom breakout often an optimal entry. Notice too the current 3-week losing streak and the previous one that occurred saw a 16% gain week ending 8/9.

Good luck.

 

Irresponsible Comparison:

• Last week I did hear some mention regarding some semiconductor names REPORTING earnings. The main story was if AMD can not record a solid earnings reaction then how in the world will INTC. Well, we all know how that worked out. While many were anticipating a nice move for AMD it slumped 11% on 10/30, while INTC jumped 8% on 11/1 (we looked at that name in our Monday Tech note here). This week we will see how LYFT works out, but I am hearing similar things, as if UBER flounders like it did losing 9% on 10/31, Lyft surely will decline. Be careful with that comparison. Below is how we looked at LYFT in our 10/25 Technology Note and it will be interesting to see how it responds this Wednesday after the CLOSE.

Stock Needs a "Lyft":

• In the ride-sharing space, there are just two names that dominate the conversation. UBER gets the vast majority of chatter and that name is now filling a gap from the 10/10 session and is a quick 10% off from the 52-week highs made on 10/11 after the TSLA Robotaxi event. Perhaps the strength with TSLA earnings was the reason behind its softness early on Thursday. The other side of the theme here is the daily chart below of LYFT. It has carved out a bullish inverse head and shoulders pattern just below the 200-day SMA and on its MONTHLY chart it has been trading between the rough ranges of the round 10-20 numbers since plunging below 20 in May 2022. There was a bearish shooting star and engulfing candles at 20 in August 2022 and this April, and bullish engulfing candle and hammer in November 2023 and August respectively. JPM owns 6.5% of the shares outstanding reported earlier this year and it was David Teppers top buy in Q2. This one can have room to run if it breaks above 14.25. 

Peeking at the MONTHLY:

• One should always try to zoom out and look at longer time frames to see if it corroborates the sanguine view. Here we see how the last 2 times a bullish MONTHLY candle developed at the very round 10 number the stock responded handsomely. First, was the engulfing candle last November PRICE doubled, and now will the stock respond similarly into year-end after this August's hammer? November is looking for a third consecutive MONTHLY advance and incredibly the stock has not recorded one in the last 5 years. Notice how the very round 20-figure once support in 2020 has turned into resistance in 2022 and this March and April.

Selloff Opportunity:

• This is not to say UBER should be overlooked. Quite the contrary as the daily chart below suggests. I think as long as this remains above the very round 70 number, which aligns with the 200-day SMA, one can be long right here. If last week's lows hold one can add to it above a double bottom pivot of 80.18. The WEEKLY time frame looks attractive too here with a first touch of the rising 50 WEEK SMA after a double bottom breakout often an optimal entry. Notice too the current 3-week losing streak and the previous one that occurred saw a 16% gain week ending 8/9.

Good luck.