Down 6% in premarket trading, it looked as though Uber (UBER) - Get Report  was headed for another painful run.

To be clear, shares were still down 1.25% in midday Monday trading on news that the Transport for London revoked the company's license for operating in the city. However, the fact that this seemingly negative news isn't driving Uber shares significantly lower really says something to investors.

When a stock struggles to decline on clearly bad news, that may suggest a bottom is either in or close. It's a similar situation when a stock fails to rally despite very positive news, which suggests buyers are exhausted.

Because Uber stock is lower on the day, there's still some leeway on this theory -- which is imperfect to begin with. But the lack of excessive selling is certainly a bullish takeaway for longs.

The stock's reaction is certainly more interesting the news itself, which is one reason Uber is RealMoney'sStock of the Day.

Let's look at the charts to see what's going on.

Trading Uber Stock

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In premarket trading, Uber was chopping just above $28 at its lows. To many traders, it looked like shares may be in the beginning stages of a pullback down toward $26. In other words, a retest of its lows.

Above $29 now though and Uber is holding up surprisingly well. But let's not mistake this better-than-expected reaction for something more bullish. To be clear, the charts are still quite unfavorable for Uber.

Coming into Monday, Uber stock was starting to look better on the long side. It had rallied from ~$26 and hit $30 on Friday. Like Lyft (LYFT) - Get Report -- which is now at its highest level in a few months -- bulls were finally seeing some encouraging developments.

For now, the stock is holding up above the 20-day moving average. However, until it clears the 50-day moving average at $30.34 and the 78.6% retracement at $30.18, it's hard to trust Uber stock on the long side.

On the downside, I would really like to see the pre-market low of $28.05 hold. Below opens it up to a test of $26 and the 52-week low.

The bottom line: Holding up on bad news is a good sign for Uber, but bulls will have more clarity if the stock is able to reclaim the 78.6% retracement and 50-day moving average. Below $28.05 is a bearish development.

This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.