EBAY Long-term outlook
EBAY is extremely bullish, the share prices up more than 25% year to date, though it still underperforms the industry which gained more than 45%. The company success to maintain gain attributed to its effort to expand internationally. Recently, the company forges¶ a partnership with MallforAfrica to expand its presence in Africa.
Aside from this deal, EBAY also partners with Facebook and Shopify this year. There is much room to grow, and EBAY partnership will create a new channel of revenue.
The optimistic outlook of EBAY does not meet with enthusiasm by insider though as there are sales done in the recent month. Traders and investors might need to consider if the share prices will hit short-term top soon.
Click to read EBAY previous analysis
New Month
Monthly chart
EBAY monthly chart shows the bull is not looking back and previous year bounce from the Fibonacci level prove to be solid. The share prices hit 38.2% extension target and roughly booked 20% – 30% gain. Where will the share prices move next?
The trend of EBAY stay bullish, but there is no guarantee it will continue higher in the short-term. There is the possibility of correction toward the blue channel.
Weekly chart
EBAY move past 38.2% extension and new record high mean the share prices are threading to the unknown area. The share prices could continue move higher, but it is not a good level to buy the shares yet until a pullback happen. Traders could look for long position near the top of the blue channel or light blue channel.
Daily chart
There is not much to look at the EBAY daily chart. The price broke through its resistance level with a strong bullish candlestick. The level should turn into support next when EBAY consolidate lower.
Trade plan
A long position could be taken from the broken resistance on the daily chart. The best level to take a long position is the top of the light blue channel.
The short position could be taken when the price closed back below daily support at $37.35 and formed a bearish pattern.