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Daring Investors Can Fill Up Their CART

Maplebear -- a.k.a. Instacart -- bounces on merger rumors, but can it really deliver for shareholders?
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Maplebear Inc. (CART) does business as Instacart, which operates a grocery delivery and pick-up service in the U.S. and Canada. Consumers can access the service via a website and a mobile app. The stock seems to be trading higher on analyst talk that Uber (UBER) might be interested in a merger.

Let's check out a few charts.

In this daily bar chart of CART, below, I can see that prices gapped higher Wednesday and gapped above the short-term 10-day and 20-day simple moving average lines. The daily On-Balance-Volume (OBV) line is edging higher and the Moving Average Convergence Divergence (MACD) oscillator is now pointed higher but still below the zero line. 

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In this weekly Japanese candlestick chart of CART, below, we don't have a lot to work with but we can see that the two most recent candles are white or bullish. A rally above $26 and a strong close above $26 will improve this chart. The $35 area (the middle of the large red candle) is likely to be resistance.

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In this daily Point and Figure chart of CART, below, I used a five box reversal filter. Here the software suggests a price target in the $38 area. Maybe. 

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Bottom line strategy: In full disclosure I have never used Instacart and I have no special knowledge of what UBER may be planning. Traders who are comfortable with dealing in a new issue could go long CART at current levels risking to $21.

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