EBAY trade ideas
EBAY outside the 1 year bullish channel!eBay lost its bullish channel after 13 months!
It could go down to 60 and lower ..!
Unless it get back to the channel!
You can see the most important support (green lines) and resistance (red lines) to watch in the coming days in these charts!
Best,
Moshkelgosha
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$EBAY Target 1 59.07$EBAY Target 1 59.07
Ok, so I did sell 57.5 puts on the Feb 18th expiration but that sure looks close… LOL.
It’s ok. I’ll double down at Target 2 if I get put.
GL, y’all…
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I usually trade both ways, but lately I’ve been focusing more to the downside because of how high the market is. It makes more sense to sell puts right now, and I’m usually at Target 2.
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I am not your financial advisor, but I will happily answer questions and analyze to the best of my ability but ultimately the risk is on you. Check out my ideas, but also do your own due diligence.
I am not a bull. I am not a bear. I just see what I see in the charts and I don’t pay too much attention to the noise in the news.
Very often you have to look at my charts from the perspective of where I’m looking to sell puts. But I also do open positions still once in a while.
If you want me to analyze any stock or ETF just leave me a comment and I’ll do it if I can.
Have fun, y’all!!
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$EBAY Undervalued & OversoldEBAY has a very stable, profitable and long history of operating business model. With a P/E around 21 and only $42b market cap it's relatively cheap. It looks to be setting up for a good long play here with price below the lower Buy Sell Band, 8.40% below the 50 day MA, and solid Range Strength/Hurst Exponent readings for a mean reversion play.
eBay at key channel support Technical Analysis
Since the start of the year, eBay has trended up in a clear channel, where the support line is the 100sma.
Since the test of the upper trend-line of the channel, eBay has retraced 10% and is sitting on the 100sma.
Stochastic RSI has been helpful to signal retracement from one side of the channel to the other. When the SRSI is oversold (under 20) and the %K (blue) goes over %D (orange), it has been a great entry. On the other hand, when the SRSI is overbought and the %D crosses above the %K, it has been a place to take profits. The SRSI cross signal has not happened.
Trade Setup
Risk-reward-ratio is fantastic, with a stop under the 100sma (Average True Range is 2.12 pts.) and a profit-exit at the top of the channel.
11/21/21 EBAYeBay Inc. ( NASDAQ:EBAY )
Sector: Retail Trade (Internet Retail)
Current Price: $74.63
Breakout price trigger: $76.50
Buy Zone (Top/Bottom Range): $74.50-$72.50
Price Target: $86.00-$87.00
Estimated Duration to Target: 56-60d
Contract of Interest: $EBAY 1/21/22 75c, $EBAY 2/18/22 80c
Trade price as of publish date: $3.50/contract, $2.75/contract
EBAY at bottom line of current uptrend on 4hr chartEBAY has been following an uptrend channel for a little over a month now. I believe this is a good area to add long calls such as the $75 call for December 17th. If it goes under the green trend line, then the next point of support would be the red one. There is also bullish divergence on the daily chart. Of course, the market could be down tomorrow, and this could send EBAY out of the trend. If it holds the trend, I would go long.
eBay | Fundamental Analysis | MUST READ...Shares of eBay plummeted immediately after the release of its third-quarter financial results on Oct. 27, despite strong revenue and earnings numbers. Weak earnings forecasts came into focus as the ongoing store relaunch negated a temporary boost in online sales during the pandemic.
However, during the peak of the COVID-19 crisis, new management made changes that could improve eBay's long-term prospects. The question for investors is whether the latest numbers indicate continued stagnation or offer a path to further growth in the online marketplace.
Admittedly, the quarter showed a mixed picture. Gross Merchandise Volume (GMV) fell 10% year-over-year to $19.5 billion as sales activity declined from an unusually high level in 2020. Nevertheless, eBay now retains a larger percentage of that transaction volume as revenue, up 11% to $2.5 billion.
Unfortunately, that growth wasn't enough to boost earnings: earnings per share fell 50% year-over-year to $0.43. Adjusted earnings, which exclude the effect of fair market value adjustments on Adevinta's business, rose 9% to $0.90 per share. Free cash flow also declined slightly, by 4% to $502 million for the quarter.
For the current period, the company's management forecasts revenue growth of between 3% and 5%. That slowdown sent the stock down 9% on the day earnings were released, but the stock has since largely recovered. In the year to date, eBay stock is up more than 50%.
A key factor for investors to consider is the change in direction of the company under CEO Jamie Iannone. Previously the head of eBay, Iannone returned to the company after leading e-commerce sales at Walmart. When he took the job in April 2020, revenues were growing at a rapid pace as closed stores encouraged consumers to shop online. Now that sales are slowing as the economy returns to normal, the new environment puts Iannone's vision to the test.
Nevertheless, Iannone has made significant changes over the past 18 months to revitalize the e-commerce company and confront serious challenges from Amazon, growing e-commerce players such as Etsy, and other platforms such as Facebook Marketplace.
Under Iannone's leadership, eBay has reduced the number of steps required to list items on the site by introducing a new listing tool to simplify the process. The company also enabled eBay's mobile storefronts and QR coding to speed up the process of getting an item. In addition, the company has added a managed payments system, which should allow sellers and customers to use digital wallets.
eBay is also targeting higher-end buyers. Thanks to these changes, the number of active buyers on the site is down 5 percent year-over-year to 154 million. But more than half of that user base is what the company calls "low-value shoppers," a group that makes up just 5 percent of total sales. According to Iannone during the third-quarter reporting conference, the number of high-value shoppers is up 6 percent since 2019 amid an overall decline in the number of shoppers.
One way to attract these important customers is to launch Promoted Listings Advanced Beta. It builds on the existing Promoted Listings platform, which allows highly ranked sellers to bid on the top slot in a given search. Promoted Listings revenue is up 9% year over year, and moves like this should attract the type of sellers that will eventually provide higher GMV and revenue.
With the worst effects of the pandemic behind it, the company is embarking on important changes that should make it more competitive in the long run. An improved user experience and more engaged buyers, among other efforts, are encouraging signs of what a reborn eBay could look like.
The market appears to be impressed by these changes, as eBay stock is up 45% this year. Management is confident enough about its prospects to increase its stock repurchase plan for this year from $2 billion to $5 billion. Experienced investors should pay attention and put eBay on their list of stocks to watch.
Trading Idea - #eBay - The Trend Is Your FriendBUY
Entry: 72.80 USD
Take Profit: 80.88 USD (+11% Profit)
Exit: 69.81 USD
eBay has been in a confirmed upward trend since the end of last year.
Currently, we are touching the lower line of the trend channel. This was a buy signal in recent months, so that an upward movement is also expected here.