My swing trade pick of the week right now is EBAY. I was surprised to see this come up on my scanner. With amazon and other online retailers, you often overlook this company and ticker especially. Anyways let’s get down to it.
Fundamentally this is a great company still. Deutshce Bank, Benchmark Co, Royal bank of Canada, Cantor Fitzgerald, and many others still reiterate this stock as a buy and outperform ticker. Even with its recent downgrade…it was downgraded to buy for long term. This brought the shares down, but it won’t stay that way. EBAY recently beat earnings, but has dipped on that downgrade by one group. This stock has been on a constant uptrend over the past 5 years and I do not see it slowing down.
Let’s get to the technicals now. RSI showing extremely overbought on the daily, under 10. MACD shows no sign of converging yet, but I suspect it will start to turn over in the next day or two and I like to get into my stocks before they turn over on that indicator. It has crossed the lower Bollinger band and has formed a candle that is almost a doji and almost an inverted hammer…but not quite either of those. Although those indicators alerted me to this, I picked it because of that strong ass support and resistance line at 32. This stock crosses in the past 6 months has sat around it bouncing around from $31.25 to $33.00 several times. This is support line has held not once or twice, but multiple times. This is the key indicator that signals the buy. I would probably look at a good open on Tuesday, a dip in the late morning, and then rally the rest of the week.
Enter at $32.00 zone and exit 4-5% around $33.00. This stock will swing up and reach it. Today the stock opened at 31.25, went up to 32.50 and just under 32 to 31.89. The range is there for you to either scalp or swing trade. It will be hard to time a bottom for this pick as the range is pretty large, but any entrance near 32 will be ideal and hold for a $.50 swing or more.