eBay stock: buy or sell
Jan 27th, 2021
eBay stock brief
- EBay stock skyrocketed 3.35% to close at $59.17 on the stock market today, after 4 consecutive sessions in positive.
- EBay presented its financial report on Tuesday
- On Tuesday, it broke out above $58.16, a resistance not crossed since last October.
- The price is currently above the upper Bollinger band, which often indicates a near-term correction
- EBay Inc. operates the marketplace and classifieds platforms that connect buyers and sellers worldwide.
Should I buy eBay stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $EBAY stock a buy?
In the current situation of eBay there is just one buy setup eligible:
ATH buy setup
One of the most recommended trading strategies is to buy on All-time Highs (ATH) breakouts. The good point of buying at ATHs is that price doesn't have upper resistances, and usually it scales fast. However, you must always be aware of a possible bulls trap that may trigger your buy order and then falls sharply. That's why a stop loss is always important. Price is now at 2.57% of all-time highs and it can breakout at any time, so if you want to trade this setup it's recommended to setup your order at $60.69. Set your stop-loss at $54.62
|Buy setup||Buy point||Stop loss||Risk|
|ATH buy setup||$60.69||$54.62||10.00%|
Should I sell eBay stock?
When is it time to sell eBay?. Trading strategies give us the ability us to avoid impulsive decisions based on our personal feelings or the noise that surrounds the market. When selling, as well as buying, detailed strategies are very simple to follow and are only valid for selling shares in your porfolio, not for shorting eBay stock
As a golden rule, you must never keep a trade that results in losses greater than those expected at the time of the buy. The timing to sell your stock should always be determined by the stop-loss (automatic or manual)
Is it time to sell eBay stock?
Currently, eBay stock doesn't match any of our preferred sell setups, so if you own eBay stock and your operation is in profit probably is not time to sell now
In the last 30 days, just one rating was published for eBay
|Jan 15th, 2021|
eBay stock analysis
Supports and resistances
The current resistance levels are:
The current supports are:
When the price moves out of the band (above the upper line or below the lower line) it tells that the price is maintaining a very strong momentum and therefore can reverse the trend to the average. At this point, the price is over the upper band, and that should mean a short-term adjustment (at least) until it is below the band
Relative strength index
Broke through the 70 level Tuesday, marking a value of 73.86. Breaking through above the overbought zone is not a sell signal, as stocks can be above the level of 70 for many weeks and continue to climb
eBay stock price history
EBay started trading on Sep 24th, 1998 at $0.91 per share1. Since then, EBAY stock has risen by 6,402.20%, with an average of 291.01% per year. If you had invested $1,000USD in eBay stock at that time, it would worth $65,021.98 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for eBay stock
Nobody can predict how much a stock will be priced tomorrow. However, many stock price forecasts are published every day by banks, financial institutions and independent analysts.
Along with buy or sell recommendations, financial institutions post their price target based on the stock price action and the company fundamental data. Most of these forecasts follow the release of new financial information by the company, and many times. If you are a small investor you shouldn't invest based on these price targets.
There is just one price target available for eBay that predicts a price of $58.00.
|Brokerage firm||Price target|
|Jan 15th, 2021|
|Morgan Stanley||$57.00 → $58.00|
Earnings and financials
Earnings event was hosted by eBay ($EBAY) on Tuesday after posting the earnings report.For comparison, the EPS for the same quarter last year was $0.81, so current EPS means -100.00%. Looking at revenue, figures barely moved compared to $26.5B same quarter 12 months ago.
EBay ($EBAY) releases Q1 financial report next April.
Please read:The opinions written in this post are personal and not recommendations for you to buy or sell shares. The author of this document does not have any knowledge of the particular positions of the reader, his or her financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are provided for informational purposes only
|Tuesday, January 26th, 2021|
|Day range||$56.97 - $59.31|
|Average true range||$1.86|
|50d mov avg||$51.70|
|100d mov avg||$51.71|
|200d mov avg||$50.35|
|Earnings date||April 28th, 2021|