eBay Inc. : A trend line as support
By Sandra Pinturault
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$52.54 | $0 | $50.95 | -100% |
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.