Symbol: EBAY. Last Time Ebay Did This It Doubled in Price!

Whitman Campus
2065 Hamilton Avenue
San Jose, CA 95125
United States
Phone: 408-376-7400
Website: http://www.ebayinc.com

Is Ebay going to $120 per share? Last time it did this it doubled!

With the market reluctantly making new highs, investors are generally being rewarded this year for their fealty.  New highs usually lead to new highs except once every 20 years where nobody cares and volatility drops like it has this year.  It could be simply that not enough poor people have money to

invest, preventing a bubble from forming.  It could also be that HFT trading strategies are so efficient that nobody can move the market anymore.  It could also be because there will be two full moons in July or that everyone is depressed that Justin Beiber is retired.

That being said, we are expecting a moderate pullback in the market “At Some Point” (obviously), so any long term trade should be strong on its own.

For those of you who remember the dot bomb days, you will also remember one of the stars that held up 40 percent of its value (a big deal back then), only to be one of the first to recover and make new highs.  Once the new highs were in, the stock doubled in price.

If you look at the chart below, you will see something similar.

Ebay Daily chart June 2 all time high

  1.  The blue angled trend lines are close to parallel.
  2. The low was not retested
  3. The up angle breakouts are parallel.
  4. The all time high broke and was not really tested (still early)

With the market and the stock at all time highs, we like ebay here.

There are many ways to play it:

  1. Long with a trailing stop loss at double its ATR (Average True Range) or calculated risk reward percentage
  2. Leaps
  3. Buy and hold for trend line.
  4. Buy after trend line breaks and stock recovers
  5. Long term long with 6-11 month put options for coverage.
  6. Pyramid or average cost buying
  7. etc

Again, because the market is finicky right now we would probably be looking to accumulate a position over time, rather than all at once, but we could easily see getting 50% of our position at this point.

Anyway, that’s what we see.  What about you?

Remember.  At HFTProfit.com, we don’t give advice.  We just point out opportunity.

– Happy Trading.

 

Ebay In The News June 2nd 2015:

The Turtle Follower

 

Stocks Eke Out Narrow Gains eBay Breakout Gains Traction

Stocks strengthened and were near session highs in early afternoon trading Monday as news of another big merger in the tech sector kept sellers at bay.…

Value investor Bet on an eBay dividend CNBC.com

That move according to Byrne will likely result in a dividend payment or a share repurchase program that could boost the stock. Read MoreBuffett-like investors will save bull market. In our view the spin-off creates value over.…

Welcome To The Ebay Stock Market Zero Hedge

With the trend has come concerns about liquidity in the multitrillion-dollar U. S. stock market. As more volume migrates to the end of the session liquidity or the ability to buy or sell stocks easily at a given price is harder to.…

 

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