EBAY dominated by bulls lifting the market higher throughout the day
eBay Inc. (EBAY) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, EBAY finished Thursday at 30.16 surging $1.79 (6.31%) on low volume, outperforming the Nasdaq 100 (5.72%). This is the biggest single-day gain in over a month. The last time we've seen such an unusually strong single-day gain on March 4th, EBAY actually lost -3.30% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 29.48, the stock confirmed its breakout through the prior session high after trading up to $0.78 above it intraday.
Daily Candlestick Chart (EBAY as at Mar 26, 2020):
Thursday's trading range has been $1.78 (6.25%), that's slightly below the last trading month's daily average range of $1.88. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for EBAY.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 30.58 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Strong Up Move" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for eBay. Out of 182 times, EBAY closed lower 57.69% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 52.20% with an average market move of -0.32%.