eBay Inc. : A trend line as support
Entry price | Target | Stop-loss | Potential |
---|
US$52.54 |
US$0 |
US$50.95 |
-100% |
---|
eBay is forming a technical recovery pattern based on a relevant area.
The American auction website has recently published results which disappointed investors, while overall, they met the analyst expectations. The net margin of the on-line payment segment declined notably from 24.1% to 23%, but the group management is still confident in their ability to achieve the objectives set at the beginning of the year.
Technically the stock has left a huge bearish gap following the publications. Since then, prices have reached a low point which confirms the relevance of a bullish trend line that acts as support for several days. This threshold could be an opportunity for the stock to set up a technical rebound towards USD 54.4, pivot point inside the already mentioned gap.
It seems opportune to take a long position at the current level to target the gap area with a stop loss behind the USD 51, in case of greater consolidation.
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