Sep 14, 2020, 10:45:03 AM
eBay Inc. (EBAY/NASD): general review
Current trend
eBay shares have grown within the correction from a 2-month low of September 8. The drop in the issuer's quotes from the July 52-week high exceeded 13.5%. The company announced changes to its Board of Directors, including the resignation of one of the company's founders. At the end of the current quarter, revenue is expected to grow by at least 2% to $2.7 billion.
Over the past week, eBay shares fell by 0.37%. Over the same period, the S&P 500 was down by 3.30%.
Support and resistance
There is a correctional movement in the company's shares. Quotes have renewed local lows. At the moment, the issuer is consolidating within the range of 51.00–54.50. There is potential for further decline. Indicators do not give accurate signals: the price consolidated between MA (50) and MA (200); the MACD histogram is near the zero line. It is better to open the positions from the key levels.
Comparative analysis of multiples of the company and competitors in the industry indicates the neutrality of the instrument.
Resistance levels: 54.50, 57.35, 61.00.
Support levels: 51.00, 47.00, 45.00.
Trading tips
Short positions may be opened after the price consolidates below the level of 51.00. The closing of the profitable positions is possible at the levels of 47.00, 44.00, and 41.00. Stop loss – 54.50.
Long positions may be opened after the price consolidates above the level of 54.50 with the targets at 61.00–64.00. Stop loss – 51.00.
Implementation period: 3 days.
Scenario
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Timeframe
Intraday
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Recommendation
SELL STOP
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Entry Point
51.00
-
Take Profit
47.00, 44.00, 41.00
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Stop Loss
54.50
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Key Levels
45.00, 47.00, 51.00, 54.50, 57.35, 61.00
Alternative scenario
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Timeframe
Intraday
-
Recommendation
BUY STOP
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Entry Point
54.55
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Take Profit
61.00, 64.00
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Stop Loss
51.00
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Key Levels
45.00, 47.00, 51.00, 54.50, 57.35, 61.00
