Yesterday, eBay shares consolidated at the 4-month low, having dropped by more than 7.5% since mid-September. The instrument is under pressure of the news about the change of the CEO of the company amid pressure from activist investors with a vision of a new strategic development plan for eBay. Since the July 52-week high, quotes have fallen by 10%.
Over the past week, eBay shares have declined by 3.17%. Over the same period, the S&P 500 weakened by 1.61%.
The issuer started to decline after a long consolidation. The quotes renewed the local lows. Currently, the company’s shares are consolidating within the range of 37.20–38.40. The technical picture signals a further correction of the trading instrument. Indicators indicate the strength of sellers: the price has fixed below MA (200); MACD is in the negative zone and continues to decline. It is better to open the positions from the key levels.
A comparative analysis of the multiples of the company and competing companies in the industry indicates that the instrument is underpriced.
Resistance levels: 38.40, 39.35, 40.65.
Support levels: 37.20, 35.50, 34.40.
Short positions can be opened after the price consolidates below the level of 37.20. The closing of the profitable positions is possible at the levels of 36.20, 35.00 and 34.50. Stop loss – 38.20.
Long positions can be opened after the price consolidates above the level of 38.40 with the targets at 40.00–41.00. Stop loss – 37.40.
Implementation period: 3 days.
EBay Inc. operates commercial platforms that connect different buyers and sellers around the world. Marketplace platforms include the company’s online marketplace at ebay.com and the eBay program of mobile apps; and StubHub’s platforms include its online ticket platform at stubhub.com, and the StubHub mobile apps that connect fans with their favorite sporting events, shows and artists, and enable them to buy and sell tickets. Classifieds platforms include a collection of brands, such as mobile.de, Kijiji, Gumtree, Marktplaats, eBay Kleinanzeigen, and others, who offer online rankings to enable people to find what they are looking for in their communities. local. The company’s platforms enable users to list, purchase, sell and pay for items through online, mobile and offline channels including retailers, distributors, liquidators, import and export companies, auctioneers, cataloging and postal companies. , ranked companies, scientists, search engines, commercial participants, shopping routes, and networks. EBay Inc. was founded. in 1995 and its headquarters is in San Jose, California.
Evidence-based financial writer with 9 years of experience specializing in earnings, economic data coverage, and bond markets. I combine fundamentals, technicals, and macro to identify low-risk, asymmetric opportunities.