Uber Stock Continues To Slide: What's Driving The Weakness?

Shares of Uber Technologies, Inc. (NASDAQ:UBER) continue to slide on Tuesday after the FTC filed an amended complaint against the rideshare company for deceptive billing and cancellation practices. Uber Technologies stock is holding steady today. Where is UBER stock headed? What To Know: The FTC, along with 21 states and the District of Columbia, filed an amended complaint alleging that Uber charged customers for subscriptions without their consent, failed to deliver promised savings and made it challenging to cancel subscriptions. The complicated cancellation process can require as many as 32 actions across 23 screens, according to the complaint. The complaint alleges that Uber also violated various state laws, as well as the Restore Online Shoppers' Confidence Act, which was passed in 2010. The lawsuit, which was filed in the U.S. District Court for the Northern District of California, notes that the states involved are authorized to seek refunds and restitution or other equitable relief on behalf of their constituents. UBER Analysis: Uber stock is currently in a bearish setup, trading significantly below its key moving averages. The stock is positioned 7.9% below its 20-day SMA, 12.4% below its 50-day SMA, and 13.4% below its 100-day SMA, indicating a struggle to regain upward momentum. The RSI is currently at 34.41, which is neutral but leaning towards oversold territory. MACD is also below its signal line, indicating bearish pressure on the stock. Key support is at $69.50, while resistance is around $93.50. If the stock approaches support levels, it could signal a potential bounce, but a break below might indicate further declines, while a move above resistance could suggest a trend reversal. Over the past 12 months, Uber has seen a solid performance with a 33.44% increase, reflecting a recovery from previous lows. This longer-term trend suggests that despite current bearish signals, there may still be underlying strength to keep a close eye on. UBER Price Action: Uber shares were down 1.69%, trading at $80.49 at the time of publication on Tuesday, according to Benzinga Pro. Read More: Tesla Rival Xpeng Receives Level 3 Autonomous Testing Permit Amid Planned Robotaxi Push: Report Image: Shutterstock