• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing

eBay Shares Are Reacting to Soft Guidance

Here's where traders who might be long should consider a sell stop.
By BRUCE KAMICH
Aug 12, 2021 | 02:07 PM EDT
Stocks quotes in this article: EBAY

eBay (EBAY) reported their second quarter earnings and Thursday the shares are slightly lower. Traders appear to be reacting to the company's guidance. Let's check out the charts.  

 
In this daily bar chart of EBAY, below, we can see that prices are trading around the rising 50-day moving average line. The slope of the 200-day line is positive too and the line intersects around $59. The On-Balance-Volume (OBV) line has been bullish and rising since November but we are seeing some "rolling over" of the indicator in recent weeks.
 
The 12-day price momentum study in the lower panel shows a pattern of lower highs in June and July as the pace of the advance slowed. 
 
 
 
In this weekly Japanese candlestick chart of EBAY, below, we can see a mixed to potentially bearish picture. At the recent price peak we see what might be considered a harami pattern to mark a high. Prices are testing prior resistance around $65 and the rising 40-week moving average line intersects around $60.
 
The weekly OBV line shows a long and bullish rise until the past few weeks where the line has been rolling over and suggests a shift from aggressive buying to aggressive selling. The MACD oscillator is crossing to the downside for a take profits sell signal. 
 
 
In this daily Point and Figure chart of EBAY, below, we can see a potential downside price target in the $57 area. 
 
 
 
Bottom line strategy: Traders who might be long EBAY should consider a sell stop at $64. I would avoid the long side of EBAY for now as we could get a better buying opportunity later in the third quarter.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Earnings | Investing | Stocks | Technical Analysis | Trading | E-Commerce

More from Investing

Here's Why Traders Are Cautious Despite Slowing Inflation

James "Rev Shark" DePorre
Sep 29, 2023 4:25 PM EDT

As we say to goodbye to a rough September, let's look what what's weighing on investor sentiment now.

Accenture Is Looking Vulnerable to a Correction: How to Play It Now

Bruce Kamich
Sep 29, 2023 2:13 PM EDT

Shares of the consulting company have turned lower from early September.

Okta: Does a New Technical Strategy Make Sense?

Bruce Kamich
Sep 29, 2023 12:50 PM EDT

The identity security management firm gets a quantitative upgrade.

Dip Buyers Should Check Out These 3 Stocks

Ed Ponsi
Sep 29, 2023 12:30 PM EDT

Let's go to the charts to create game plans for three names that have fallen into oversold territory.

Is Zscaler Giving Off a Buy Signal?

Bruce Kamich
Sep 29, 2023 11:44 AM EDT

Here's when investors may want to add.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 12:13 PM EDT BRUCE KAMICH

    8 Trading Rules from T. T. Hoyne

    You just read the header for this missive and prob...
  • 08:42 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    How Elite Traders Make Big Profits
  • 02:58 PM EDT BRUCE KAMICH

    Classic Trading Rules From Bernard Baruch

    Bernard Baruch listed the rules (below) in his aut...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login