Tesla's Robotaxi Day could impact Uber Technologies, Inc.'s (NYSE:UBER) stock performance and long-term valuation, as analysts see potential gains in Uber's network value from a growing autonomous vehicle market.

If positive sentiment from the event boosts investor confidence, Uber may break through key resistance levels, creating opportunities for savvy traders.

When a stock rises above resistance, traders call it a breakout. As you can see on the chart, Uber shares may be breaking out. This is why our team of traders and technical analysts has made it our Stock of the Day.

If a stock is moving higher, there isn't enough supply (sell orders) to fill all the demand (buy orders). Because of this, investors and traders who wish to acquire shares are forced to pay successively higher prices, forcing the stock into an uptrend.

When a stock reaches a resistance level, the dynamic changes. There is enough supply at these levels to fill all the demand, so buyers can purchase all the shares they wish without having to worry about the price moving up.

Sometimes, when a stock reaches a resistance level, it reverses and moves lower. This happens when some of the people who wish to sell become anxious. They know that potential buyers will go to whoever is willing to sell their shares at the lowest price.

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As a result, they reduce the prices at which they are willing to sell. Other anxious sellers see this and do the same. This has a snowball effect, pushing the price lower.

As you can see on the chart, Uber experienced this when it hit resistance around $82 in March.

But the shares have now exceeded this level and may be breaking out.

Breakouts tend to be a bullish indicator for stocks. They can show that the traders and investors who created the resistance with their sell orders have left the market. They have either finished or canceled their orders.

This can set the stage for a move higher. With the supply removed from the market, buyers may be forced to pay higher prices, forcing the shares into an uptrend.

The recent rally may continue now that Uber has broken the $82 resistance level.

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