Current trend

Since the beginning of December eBay stock are steady growing, going up by 8%, due to the positive BMO Capital Markets recommendation upon the prices growth in 2018. Fast and large eBay expansion on the international markets will let the company to get the additional income of 83 million USD before the end of the year and double additional incomes to 200 million USD in 2018 and to 340 million USD in 2019. Moreover, the increased growth of the sales volumes will let the company to compensate increasing marketing costs, which will positively affect the operating margin.

During the last week, eBay stocks grew by 1.71% against the growth of the S&P 500 index by 0.46%.

Support and resistance

Since the beginning of the month, the “bullish” moods prevail. Now the issuer is set within the range of 37.00–37.85 and has a potential to grow. Indicators reflects the strength of buyers: the price is set above МА (50) and МА (200); MACD is in the positive zone. It is better to open the positions according to the current trend.

The comparative analysis between the indicators of the company and its competitors suggest that the shares are underpriced.

Resistance levels: 37.85, 38.50, 39.20.

Support levels: 37.00, 36.00, 35.00.

Trading tips

If the price is set above the resistance level of 37.85, it is better to open long positions. Closing profitable positions is possible at the levels of 38.50, 39.00 and 39.25. Stop loss is 37.25.

If the price is set below the level of 37.00, the fall to the levels of 36.00–36.75 is expected. Stop loss is 37.50.

Implementation period: 3 days.

Scenario

TimeframeDay's Range
RecommendationsBUY STOP
Entry Point37.90
Take Profit38.50, 39.00, 39.25
Stop Loss37.25
Support levels35.00, 36.00, 37.00, 37.85, 38.50, 39.20

Alternative scenario

RecommendationsSELL STOP
Entry Point36.90
Take Profit36.00, 36.75
Stop Loss37.50
Support levels35.00, 36.00, 37.00, 37.85, 38.50, 39.20
eBay Inc. (EBAY/NASD): general analysis

The material published on this page is produced by the Claws&Horns Company and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

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