Stock of the day: eBay

Positive sentiment on stocks continues. Today we are coming back to eBay, which we already analyzed many times on our website. This time, we are of course bullish, which is a continuation of the view presented in the previous piece, published at the beginning of November, where we wrote:

“Despite the negative sentiment for most e-commerce giants, eBay is currently showing sparks of hope with a potentially very nice bullish occasion. This bullish occasion is gathered around the inverse Head and Shoulders pattern (yellow).”

That was sport on, especially in the first half of November, when the price rose almost 9 USD. In that time, the price managed to break two crucial down trendlines (blue and red), which gave us a proper buy signal. Since the middle of November, eBay entered a correction stage, which is handsomely shaped like a flag (black). A flag is of course promoting a breakout to the upside and this is our current scenario for this instrument.

As for the target, the area of around 50 USD (orange) seems like a good idea. This is resistance from August and support from March, so seems like a perfect aim for now. Positive sentiment will be canceled, when the price will come back below the down trendlines but chances for that are rather limited.