It seems that the correction on global exchanges has accelerated. The situation on some indices is starting to look pretty negative. One of the instruments with the fresh sell signal is the e-commerce giant eBay. This will be the first time that we are analysing this instrument.

The main thing that is happening here is that the price escaped from the channel up formation (green). The breakout of its lower line, which happened yesterday is definitely not a good sign. Another thing is the massive triple top formation (yellow) which emerged recently. The neckline (blue) of this formation is still intact but we are at least a good way into testing it. As long as we stay above that blue line, buyers can still have hope.

Hope comes also from one factor: the red line. We are still above it, which is promising. Why? Because this red line is the long-term up trendline and is apparently the last stronghold for buyers. Once it’s broken, we’ll get a major, long-term sell signal.

So what’s happening? So far not much, we’re still above supports, so it’s kind of good. The only breakout of the red and blue line will be a trigger to go short. For now, we wait. This breakout seems pretty close.


About Author

During his career, Tomasz has held over 400 webinars, live seminars, and lectures across the globe. He was also an academic lecturer at Poland's Kozminski University. In his previous work, Tomasz initiated live trading programs, where he traded on real accounts, showing his transactions, providing signals and special webinars for the accounts; none of which were ever negative. Tomasz gives preference to a technical approach to trading: mainly price action with very strict money management rules. He believes that the most important thing in trading is your mind, so it is much better to focus on trading psychology than to look for the Holy Grail of trading systems.

Comments are closed.