Ebay Inc. shares (NASDAQ:EBAY) are already showing signs of weakness, but the trend will not turn completely bearish until the demand zone at 33.00 is breached to the downside and price remains below it.
In spite of what is said in the preceding paragraph, there is already a short-term “sell” signal in the market. The ADX period 14 is around the level 20, which shows low momentum with a possibility that the momentum will rise soon. The DM- has just crossed the DM+ to the upside, which shows that buyers are capitulating.
The MACD default parameters, has its signal lines pointing downwards, threatening to cross the zero line to the downside. The histogram is already below the zero line. Once the signal lines go below the zero line, there would be a Bearish Confirmation Pattern in the market, which would signal the possibility of a bearish year for eBay.
Given the conditions in the market and the indicators readings, the probabilities that EBAY will go bearish is very high.
Trading realities: Trading realities
CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).
This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.
Hot Features
Premium
Register for real-time alerts, custom portfolio, and market movers
