EBAY rockets, gaining $0.98 (2.31%) within a single day
eBay Inc. (EBAY) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
EBAY finished the week 3.18% higher at 43.45 after surging $0.98 (2.31%) today, notably outperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. This is the biggest single-day gain in over four weeks. 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. Today's close at 43.45 marks the highest recorded closing price since March 12, 2018. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 42.93, the market confirmed its breakout through the prior session high after trading up to $0.56 above it intraday.
Daily Candlestick Chart (EBAY as at May 22, 2020):
Friday's trading range has been $1.24 (2.93%), that's above the last trading month's daily average range of $1.00. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for EBAY.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
After having been unable to move lower than 42.24 in the previous session, eBay found buyers again around the same price level today at 42.25.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Up Move" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for eBay. Out of 106 times, EBAY closed lower 56.60% 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 56.60% with an average market move of -0.61%.