Let me show you something I saw on $LYFT today. (April 22, 2020)

by DAN LYFT 
This is Scott with your Free Chart of the Day. I want to show you something that I noticed on LYFT ( NASDAQ: LYFT ) today. LYFT ( NASDAQ: LYFT ) looks like a lot of charts that we have seen in the market; where we have this big rollover from the February drop, a hit of the lows. We get a high, we get a higher low, we get a higher high, technically because we did break above that level, and then we get a higher low. So we are in kind of an equilibrium pattern here with LYFT ( NASDAQ: LYFT ).

If I draw some trendlines here I can connect these lows and I also can connect some highs. If I zoom in here a bit you can also see that we just slightly peaked above this downward sloping trendline today and we did it on just okay volume. But let’s be honest, the volume in the market was pretty low today; one of the lowest in months. So I am not putting too much faith in how low the volume is but I am watching the price action.

Here on the hourly chart you can see that downward sloping trendline. This level’s resistance, this level’s resistance, this level’s resistance, and then today we broke above that level, held above, and then now if I zoom in you can see that we are kind of squeezing into the upside here.

Now, when I talk about squeezing I am talking about these Bollinger Bands. These Bollinger Bands here are within a width of just under 6 percent. Usually, when you get tight Bollinger Bands you can get some interesting moves in price. In this case, we can see that price is squeezing to the upside here on the hourly chart and doing it on a nice pickup in volume. So I am looking for more here on LYFT ( NASDAQ: LYFT ).

Back on the daily chart, I think that we can probably assume this stock could test the 50-day moving average up here at around 32.50. If we get above and stay above the 50-day moving average then I would be looking for an upside move to right around $44.00. Now, of course, I don’t think that that would happen overnight, but move the access over a little bit and, yes, I could see a move up here if this trend continues.

So keep an eye on LYFT ( NASDAQ: LYFT ); it could be an interesting move. You will probably want to have an alert just above $31.00 to take a look at it. You would want to be out of the stock if it does break below and stay below the daily 8 exponential period moving average, which is giving you about 7 percent risk. You probably want to mind your position size initially and then move that stop up if the trade starts working.

I hope that makes sense to you; I hope that trade is helpful.

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