Ebay has been trading sideways for a very long time. This is not the first trade on Ebay, check out the linked chart.
Everytime Ebay approaches the 50$ level, it's time to buy. When I first published this trade, there were some negative comments on how Ebay is bearish and I shouldn't buy. Well, the story is simple, when price stands at 50$, buy, it's a good bet. At some point it will probably go way below 50, but until then, this is a good bet.
There is a double bottom at the buy zone, with a MACD histogram divergence, which is not yet completed, but it will soon be. There is a bullish divergence on the MACD lines, and bullish divergences on both FIs.
Tommorow, I'm going to wait 30 minutes after the open. Depending where we stand at that time, I will enter or I will wait. Allthough it's a clear signal, and I'm very confident in this trade, if you look back you can see how Ebay likes to whipsaw traders with false breakouts, and I'm trying to prevent this. Once long, my stop is 49.46, which is a bit more further away than my usual stops, but again, looking back at the reverseal points explains this. My first target is at 55$, and my second at 57$, but according to how ebay will act, I might take partial profits at 52.50.
I checked out the correlation between the overall market and Ebay, red lines represent start of declines, and blue lines represent start of rallies. Allthough it sometimes correlates with panics and surges, it is not that well correlated and even if the Dow will have a very nasty picture (I believe it's coming soon, I'm still waiting to pull the trigger) I will not close the entire position out. Chart here
Everytime Ebay approaches the 50$ level, it's time to buy. When I first published this trade, there were some negative comments on how Ebay is bearish and I shouldn't buy. Well, the story is simple, when price stands at 50$, buy, it's a good bet. At some point it will probably go way below 50, but until then, this is a good bet.
There is a double bottom at the buy zone, with a MACD histogram divergence, which is not yet completed, but it will soon be. There is a bullish divergence on the MACD lines, and bullish divergences on both FIs.
Tommorow, I'm going to wait 30 minutes after the open. Depending where we stand at that time, I will enter or I will wait. Allthough it's a clear signal, and I'm very confident in this trade, if you look back you can see how Ebay likes to whipsaw traders with false breakouts, and I'm trying to prevent this. Once long, my stop is 49.46, which is a bit more further away than my usual stops, but again, looking back at the reverseal points explains this. My first target is at 55$, and my second at 57$, but according to how ebay will act, I might take partial profits at 52.50.
I checked out the correlation between the overall market and Ebay, red lines represent start of declines, and blue lines represent start of rallies. Allthough it sometimes correlates with panics and surges, it is not that well correlated and even if the Dow will have a very nasty picture (I believe it's coming soon, I'm still waiting to pull the trigger) I will not close the entire position out. Chart here
