3 Views to Bid on eBay at $45.50
- Posted by Greg Harmon
- on June 4th, 2013
The auction giant has long been discussed as having some great business and very poor management. Over 2012 the business story seem to have been winning out but now it seems that the stock is ready for a pullback. Take a look.
eBay, $EBAY Monthly
The first view is very simple. The monthly chart of eBay, $EBay is printing a double top. This is reinforced by the Relative Strength Index (RSI) in overbought territory and moving back lower with a Moving Average Convergence Divergence indicator (MACD) also turning lower. The rising 20 month Simple moving Average at 45, near the peak on the bonce in 2005 seems a logical target eventually.
eBay, $EBAY Daily
This second view, on the daily chart, shows a simple rounding top. There is support lower at 52 and a break of that would be a disaster scenario for the stock with support lower at 46. But all told, both of these views give a good amount of time to get out. It is the last view that may cause some anxiety and accelerate the downside. This shows the stock breaking a 2 and a half month symmetrical triangle to the downside. The rising 200 day SMA is there to try to provide support but the target on the move lower out of the triangle is to 45.50. There you have it 3 views, 46,45,45.50, average out to a target of 45.50
eBay, $EBAY Daily
Join the Dragonfly Capital Views Premium Membership
Want to learn more about Dragonfly Capital Views?Dragonfly Capital Views Performance Through May 2013 Expiry and sign up here.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- Thoughts on an Earnings Trade for Amazon
- Premium Earnings 10-23-14
- The Super Dollar’s Next Leg Up
- Listening to the Megaphone in CVS
- Premium Earnings 10-22-14
- Market Musings of a Non-Perma-Bull
- Trust, But Verify: Home Depot
- Dragonfly Capital Views Performance Through October 2014 Expiry
- Premium Earnings 10-21-14
- Calling Hawaii 5-0 to Rescue the S&P 500