Friday, November 11, 2016

EBAY To Start Trending Up

eBay Inc.  [EBAY]

     At this point you've noticed that I like the hammer. Definitely one of my favorite trend reversal indicators. If you look back through charts it's hard to find one that does't work out. I think I may have stumbled across one looking through some random stocks this morning. Before eBay released their earnings on October 19th I was looking into them and liked what their company was doing. Trying to revamp their buying and selling platform and bringing them back near the spotlight. I bring up their October 19th 3Q release because they closed at $32.52 on the 19th and then opened up $29.35 on the 20th. Pretty rough report. So it's been almost a month and things have cooled off a little bit. Since then, the stock has performed -2.96% which is in no way good, but nothing like the initial drop after 3Q. Anyway, I decided to take a look and this is what I saw on the weekly chart...

Check that out! Stockcharts even highlighted it in yellow. I don't know if that means it's a sign of a trend reversal or just a coincidence, but in my eyes it's a sign of a trend reversal. I am in a mock portfolio competition - fake money and any investments you want with no real risk. all practice - and I just went and bought eBay. Pretty much to test my theories on technical indicators.

     If I had to venture a guess, the stochastic and the MACD are going to start to turn upward and appear more bullish. I like it up to about where it started to fall; around $32. Another thing to note is that the RSI is starting to turn upward at 47.59. That isn't a great indicator, but it is TECHNICALLY under 50 and could be considered over sold. When you start pulling at straws though, mistakes can be made. Overall, I really like the way the chart looks and the hammer, highlighted in yellow, looks very strong. I'm a fan. 

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