Three weeks after I projected a fall to 53.60, Lyft has touched that number and gone as low as 52.78. The stock will have another chance to pick up support slightly below, at 52.27, a midpoint Hidden Pivot, but a decisive breach would put a 41.54 target in play. That would represent a 53% drop from the opening day high of 88.60 and a 21.5% drop from the current price of 52.90.

Uber is unlikely to fall as much percentage-wise after it begins trading on Friday simply because Lyft’s experience is certain to discourage the repetition of the wild excesses that greeted Lyft's first day of trading on March 29. Uber shares are expected to open in the range $44-$50, representing a valuation of $80 billion to $90 billion. If it opens in the middle of that range, near $47, a 21.5% drop from there over the next couple of months would bring it down to 37.13.  These targets are just guesstimates, but you should jot them down anyway, since my strong hunch is that they will both be achieved. 

Click here for a free two-week trial subscription that will give you access to all paid features and services of Rick’s Picks, including daily, actionable trading recommendations and a ringside seat in a 24/7 chat room that draws veteran traders from around the world.

| Digg This Article
 -- Published: Thursday, 9 May 2019 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus
Previous Articles by Rick Ackerman