Stock of the day: eBay

By Tomasz Wisniewski|

Published: February 14 2022, 07:34 GMT+0

Stock of the day: eBay

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The biggest question right now is whether Russia will attack Ukraine or not. Various major geopolitical players worldwide, including the US, say yes, but the two most involved countries, Ukraine and Russia, say no. What is going on there? Because there is no clear answer for this question, there is a high level of uncertainty on the market, which is the reason for the risk off mode across the globe. Risk off means that safe havens go up and risky assets like stocks, for example, go down. In today’s stock of the day, we have eBay, which has been going down since October and does not need a war to be in a bearish trend.

The situation on eBay is very interesting from the technical point of view. The price broke the major up trendline (red) at the end of November, officially introducing the downtrend here. The drop is very healthy, respecting the green dynamic resistance and creating very small bullish corrections.

About those corrections (yellow), I need to write a separate paragraph. They are so far the same in terms of depth, shape and general size! What is more, they both bounce of crucial Fibonacci resistances: 23,6 and 38,2%. If history likes to repeat itself and often does, we should see a bigger drop here soon.

Sentiment on eBay is negative, and it feels safe to say that the price should soon test the 50% Fibonacci. The bearish scenario will be cancelled when the price breaks the green down trendline, but chances are rather limited.

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