Is NASDAQ:EBAY Completing a Bearish Head and Shoulders Top?
The monthly chart is pretty close to completing the right shoulder in what looks to be a bearish Head and Shoulders formation.
Measuring from the top of the head down to the neck line would put the price target down to $3.00 and change.
It will be interesting to continue to watch what the 14 RSI does...
It's technically a quite bullish chart. The price has established an higher low, has broken above the 30's SMA and has broken the descending trendline, re-tested it and now it seems like we're in the game. ;)
Furthermore there is a bullish seasonality playing out ATM. So I put on my horns in this case ...
I wonder who is still using Ebay?! I used to have a store there and close it because of their high fees.
If you haven`t sold EBAY here, on the active buyers decline:
Then you should know that looking at the EBAY options chain ahead of earnings , I would buy the $47.5 strike price Puts with
2023-7-21 expiration date for about
$3.70 premium.
If the options turn...
EBAY - Why Can It Rise Again?
EBAY - Why can it rise again?
As we have seen in previous quarters, EBAY has reported very good earnings data. Every time above expectations.
On February 22, 2023, EBAY is due to report earnings again.
On the chart, we can also see that the price broke out of a strong structure area adding more value to the bullish...
EBAY breakout of the symmetrical triangle which was inside of the down channel is bullish. Breakout was on bigger volume and was also breakout through BigRed 200 days MA which is also very bullish, and now is forming high base formation just right after its breakout.
Friday's price action wasn't confirmed with volume as it was below 20 days average.
It is above...
We have broken the downsloping supply line here on EBAY, whether you want to look at this as a 3 drives or an inverse head and shoulders, the targets would be similar. Another one with clear divergence, rising momentum and volatility.
“Discipline is only difficult when you look at it as something unenjoyable. When you re-frame cutting losses and celebrate avoiding a large loss and freeing up capital for a better trade, suddenly having discipline becomes second nature and being undisciplined becomes painful.” ~Mark Minervini~
Ebay is breaking through its down trend and starting to show signs of retesting the trend. Rainbow Theory notes to keep your eyes on:
-Pivot Support
-Channel Walker Resistance Broken
-Candle Color Rotation
Let us know what you think!
Classic cup and handle formation, we're in the handle right now, patiently waiting for a break to the upside. This is one of the few charts with a strong bullish set up, news of some sort coming?
The PEAD projected a Bullish outlook for $EBAY after a Positive over reaction following its earnings release placing the stock in drift B with an expected accuracy of 80%.
Price is retesting the broken support now resistance. I don't think is going to break it through. I just bought some puts expiring on dic 16. Let's how it plays out.
