EBAY - 22.14% Potential Profit - Corridor BreakoutCorridor Breakout out of a 1-month price correction.
Target price set at resistance line bounce.
- Strong Uptrend
- RSI and STOCH well above 50
- MACD well above Signal
Suggested Entry $57.91
Suggested Stop Loss $56.88
Target price $70.80
Note that I tend to adjust stop losses in order to secure profits early and preserve capital. This means that the target price is going to be achieved as long as there are no strong pullbacks that trigger my new adjusted stop loss.
EBAY
$EBAY$EBAY
To remain bullish, we would like to see $Ebay hold a daily candle over $49
Over the weekend news came out with the following headline:
"eBay sellers told Martin Luther King memorabilia is 'offensive' after new policy is introduced
The auction site wiped thousands of 'inoffensive' items overnight after banning items that further racial stereotypes"
Articles were published today so it will be interesting to see how Wall Street reacts Monday morning.
Ebay is also one of those companies that has moved on towards all time highs. Possibly because people have nothing to do right now other than sit at home and buy and sell their own goods?
If $49 does not hold and the markets continue to drop, support looks like it can be found around $43.
Ebay's New Marketing Plan ... Attract more Buyers & SellersEBay is starting a marketing campaign this week to drive new buyers to the site, according to the mind of eBay Americas Jordan Sweetnam, who reached out to sellers on Tuesday through a post on the Seller Announcement Board.
EBay will run commercials across radio, display, electronic video and paid social. The creative builds on its Up & Running program, which is "meant to show the world that hundreds of thousands of small businesses are always up and running eBay," Sweetnam explained.
He connected to movies on YouTube, and while they may certainly entice buyers, they seem to be targeted more to small retailers that have had to close their physical shops and are looking for sales online.
Sweetnam said eBay saw a surge in buyer demand in April that resulted in double-digit Marketplace quantity development. In March and the first part of April, shoppers had been purchasing things in what eBay calls"confinement" categories -"items that people increasingly needed as they prepared for or adjusted to shelter in place mandates," he explained. "Buyers were focused on products for home offices, gym equipment and indoor leisure activities like video games and consoles."
EBay had pulled back marketing appreciably in North American in early 2019, and in its recent first-quarter earnings call for 2020, the company told Wall Street analysts,"Coming into Q1, we expected and saw modest buyer growth deceleration driven in part by our planned reduction of marketing spend on buyers with lower engagement and higher churn"
Sweetnam referenced eBay's marketing investment once he wrote,"You've heard often from me about how we are being strategic with our marketing dollars, and this new campaign reflects the changing market dynamics and the unique opportunity we have to really go out and drive the eBay brand message."
EBAY Stock Price Summary
30 day high of the EBAY stock price was $41.09 and low was $30.28.
90 day high was $41.09 and low was $26.02.
52 week high for eBay Inc. - $42.00 and low - $26.02.
Daytrading Summary 04/06/20 - 4 Trades and +2.34%!Hi traders,
Let's do a daily recap!
In my ID trades, I risk 1% of the account per trade and go for 2% (2:1 RRR)
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Sometimes I adapt a little bit as you can see in the graphs.
I had 4 trades, 2 winners and 2 losers . If I were to point out the least interesting it would be the W short. I had literally zero emotions towards that trade. It was going to either drop dead and make some fast profit or fail, which it did. No problem, move on...
My "Italian marriage", however, was definitely EBAY. I was staring at the screen watching all the stocks (previously weaker) grow steadily, while EBAY was just stuck. In the end, however, I got paid a little extra for my troubles and ended Monday in solid green.
How was your Monday?
Please let me know if you'd enjoy this format from now on as well!
Good trades,
Tom from FINEIGHT