eBay Inc. (EBAY/NASD): general review
29 March 2018, 12:23
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | SELL STOP |
| Entry Point | 39.70 |
| Take Profit | 38.50, 37.50, 37.00 |
| Stop Loss | 41.00 |
| Key Levels | 37.50, 39.75, 41.00, 42.50, 44.25 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY STOP |
| Entry Point | 41.10 |
| Take Profit | 42.50, 44.00 |
| Stop Loss | 40.00 |
| Key Levels | 37.50, 39.75, 41.00, 42.50, 44.25 |
Current trend
In the second half of March, eBay shares fell by 9.1% and are now traded at a discount of 13% to the historic high.
Despite the long drop since the beginning of February, the price of the emitter's quotes remains higher than the maximums of 2017. The high demand for eBay shares is connected with the business model of the company, which, unlike similar competitors' models, allows to provide higher profitability. Moreover, over the past holiday season, eBay generated a record free cash flow of USD 800 million, which promises additional revenues for shareholders in the future.
During the previous week, eBay shares dropped by 3.74%. S&P500 dropped by 3.93% within the same period.
Support and resistance
Since the beginning of the current week, #EBAY has been traded pretty calm. No single direction tendencies are observed. The company's shares are consolidating. The emitter is testing local levels of support and resistance: at 39.75 and 41.00, respectively.
Indicators don't give a clear signal: the price crossed MA(200), and MACD is located near the zero mark. Positions are to be opened from key levels.
Comparing company's multiplier with its competitors in the industry, we can say that #EBAY shares are neutral.
Support levels: 39.75, 37.50.
Resistance levels: 41.00, 42.50, 44.25.
Trading tips
If the price consolidates below the support level of 39.75, one may consider selling #EBAY. Potential profits should be locked in by orders at 38.50, 37.50 and 37.00. Stop-loss will be placed at 41.00.
If the price consolidates above the level of 41.00, one should expect the company's shares to grow. The moving potential is aimed at the area of 42.50-44.00. Stop-loss should be placed at 40.00.
Implementation time: 3 days.
In the second half of March, eBay shares fell by 9.1% and are now traded at a discount of 13% to the historic high.
Despite the long drop since the beginning of February, the price of the emitter's quotes remains higher than the maximums of 2017. The high demand for eBay shares is connected with the business model of the company, which, unlike similar competitors' models, allows to provide higher profitability. Moreover, over the past holiday season, eBay generated a record free cash flow of USD 800 million, which promises additional revenues for shareholders in the future.
During the previous week, eBay shares dropped by 3.74%. S&P500 dropped by 3.93% within the same period.
Support and resistance
Since the beginning of the current week, #EBAY has been traded pretty calm. No single direction tendencies are observed. The company's shares are consolidating. The emitter is testing local levels of support and resistance: at 39.75 and 41.00, respectively.
Indicators don't give a clear signal: the price crossed MA(200), and MACD is located near the zero mark. Positions are to be opened from key levels.
Comparing company's multiplier with its competitors in the industry, we can say that #EBAY shares are neutral.
Support levels: 39.75, 37.50.
Resistance levels: 41.00, 42.50, 44.25.
Trading tips
If the price consolidates below the support level of 39.75, one may consider selling #EBAY. Potential profits should be locked in by orders at 38.50, 37.50 and 37.00. Stop-loss will be placed at 41.00.
If the price consolidates above the level of 41.00, one should expect the company's shares to grow. The moving potential is aimed at the area of 42.50-44.00. Stop-loss should be placed at 40.00.
Implementation time: 3 days.
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