High Court case on driver wage tax keeps Uber stock trading rangebound

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Uber slips 0.85% to $71.56 today

Highlights

Uber is acquiring Blacklane to strengthen its presence in premium and executive travel, pending regulatory approvals.
A High Court case in New South Wales could materially impact Uber's cost structure due to an $81.5 million wage tax assessment.
Technical signals are bearish with Uber trading below major averages, suggesting increased likelihood of further downside within a $69.50–$73.50 range.

Acquisition, AI adoption and legal uncertainties drive mixed investor flows

Uber reached an agreement to acquire Blacklane, a chauffeur service platform, as part of its expansion into premium and executive travel, with the closing subject to regulatory approvals. The company is actively adopting Amazon’s custom chips to advance artificial intelligence initiatives and manage increased digital workloads. A pending High Court case will decide whether Uber’s driver payments in New South Wales are taxable as wages, following an $81.5 million assessment from authorities. Recent regulatory filings also showed increased institutional investments in Uber Technologies, though price action has remained under broader selling pressure.

Bearish momentum confirmed as Uber tests support amid seller dominance

Uber trades below its MA-20 ($73.18), MA-50 ($74.56), and MA-200 ($86.86), reflecting prevailing pressure from sellers across all timeframes. The Ichimoku Kijun level sits at $73.86, which serves as immediate resistance above the current price of $71.56.

Momentum remains weak, with the MACD signaling a continued sell bias and the ADX D1 at 17.18 highlighting a lack of strong trend conviction. RSI at 46.19 and CCI at -48.05 both suggest mildly oversold conditions, while Stoch RSI is neutral and BBP registers at 0.25, tilting to seller dominance but not showing extreme pressure. The daily move is negative, slipping 0.85% with no significant opening gap, and the price is trading near the lower end of today’s range in a session characterized by moderate volatility and steady downside pressure. Oscillators largely confirm the bearish momentum, and intraday dynamics reinforce the prevailing negative tone.

Further downside risk as technicals favor limited rebound potential

For the next five trading days, the expected price range is adjusted to $69.50 – $73.50 to remain within a volatility band relative to current levels. Technicals assign a very low probability (less than 20%) to an upward breakout, making a further decline more likely. The baseline scenario sees Uber drifting sideways between $69.50 and $73.50. In a bullish case, a sustained move above immediate resistance at $73.86 would be needed for upward momentum. The bearish scenario involves a break below support near $69.50, pointing to further near-term weakness.

Anton Kharitonov, expert at Traders Union, sees Uber trading below all key moving averages and facing persistent selling pressure. He notes recent institutional inflows and corporate developments, but technicals and momentum indicators remain decisively bearish. The analyst maintains a cautious stance, expecting price action to stay within the $69.50 – $73.50 range unless immediate resistance is reclaimed. "Unless Uber breaks above $73.86, the downside risk stays elevated and I remain defensive here."

Earlier, analysts noted that Uber shares were under sustained selling pressure despite ongoing strategic initiatives. The persistence of weak momentum in both price action and technical indicators, combined with fresh regulatory and acquisition developments, reinforces the need for investors to monitor any break below the $69.50 support as a signal for potential further downside.

Source of Data: UBER Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.