EBAY closes above its opening price after recovering from early selling pressure
eBay Inc. (EBAY) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, EBAY ended the month 5.4% higher at 55.28 after gaining $0.56 (1.02%) today, underperforming the Nasdaq 100 (1.78%). Trading up to $0.73 lower after the open, eBay managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on July 24th, EBAY gained 3.83% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (EBAY as at Jul 31, 2020):
Friday's trading range has been $1.50 (2.72%), that's slightly below the last trading month's daily average range of $1.79. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for EBAY.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Although the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could accelerate should prices move below the close-by swing low at 53.66 where further sell stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for eBay. Out of 211 times, EBAY closed higher 55.92% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 59.72% with an average market move of 1.58%.