Breakout
Ebay is breaking out today as we are clearing well above the downtrend-resistance (red) and the recent horizontal-resistance (blue) with a strong bullish candle as the stock is up nearly 3% as I write this article. We have strong “Double Bottom Reversal” fully confirming while cultivating a healthy uptrend characteristics of higher lows and higher highs. As of today, we are also now trading well above the 100SMA (not shown in the chart). Bullish price-action.
My Position & Target
I’ve been watching Ebay since the ER gap-down back in 10/20/2016 as I was anticipating for an entry. When there is fear, I look for an entry; and when there is greed, I look for an exit. And definitely, there has been much fear and nervousness among investors/traders after it plunged about 18% since late-September to early-November. My plan was to buy the dip @ $27ish as I’ve tweeted out on 11/1/2016 because in my long-term forecast/analysis, I came to a conclusion that $27-level was a good level for a bounce.
My “Breakout Target” is @ $32.50, which I would close out about 1/2 of my positions there, if we can able to clear well above $33 and stay up, I think $36-$37 might even be possible which is my next target after $32.50.
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Post Update: 1/26/2017
ER Reaction
After the ER last night, EBAY was initially up more than 9% before started falling through out the day, but still positive ending the day +5.00% gain as the “ER Gap” is still open at the close. I think 31.20ish level could provide some support should the price continues to slide tomorrow and early next week. I’m still bullish on EBAY in the long term, so I am still holding my full call-positions as of today and I might even think about adding some more to my current calls at around 31.20ish level.
4 thoughts on “EBAY Breaking Out – PART 1”
Good call. Had been thinking about buying this stock, but having problem pulling the trigger. Thank you.
Thnx, yea I know what you mean about pulling the trigger. Sometimes it helps to just go for it with small size, and then add more as it starts to make move
That was a great call at 27 on $EBAY. I actually did purchase calls at around 28.50ish and still holding, doing awesome so far!
Nice