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February 13 Chart of the Day - Lyft

Precision oriented price action technical analysis by far provides the best edges and most setups for traders across the markets so that's what we use for the basis of our reviews.

Ride sharing service Lyft (LYFT) is scheduled to report earnings results after the bell today.  Compared to the category leader Uber, Lyft's stock price couldn't be moving more opposite over the past few years since going public.

For this reason we wanted to review their chart from a price action technical analysis perspective.

On the monthly chart we can see that that there's less than 5 years of historical data so in a sense price is still in a discovery phase, meaning because there's less data to review from the past that price could do things that's its not done before on this chart.

Regardless, we can see that price is way off its $88.60 all time high (ATH) set shortly after going public.  Since then it's been sell, sell, sell.

Price made its current $7.85 all time low less than a year ago and has been trying to make a series of higher highs and higher lows - an uptrend.  But can that continue?

 
In an attempt to determine that we'll move down to the weekly chart.

Here we can clearly see the uptrend trying to work its way back up but currently price is cycling back down for a possible test and decision in the form of a bull Fibonacci and trend.  

This first screen shot was taken before today's open.

This next weekly screen shot was taken after the opening bell today and yes indeed price decided to test the area just mentioned.

While this area is not the last chance for the bulls to step in it could turn out to be a good area for price to pop up.

It will be interesting to see if earnings can be a catalyst to keep price on its uptrend or allow price to further cycle down towards some last ditch levels for the bulls to possibly step in...

POST EARNINGS CHART UPDATE

So what's next? 

We don't make predictions...

Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.

  1. Support/Resistance
  2. Trend
  3. Fibonacci 
  4. Supply/Demand Zones,
  5. Change Control Zones

ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.

Take a look at the charts and let us know what you think.  

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