Thursday, August 26, 2010

EBAY Watch

The online auction company eBay Inc. (EBAY) has moved to bear phase on Person's Proprietary Signal (pps), buttressing an earlier short-term signal. The pps was accompanied by a 3% (so far) intraday slide.
EBAY $22.79

Today's low, with an hour of trading left, stands 3.6% below Monday's swing high.

The parabolic sar and macd remain in bull phase, although the macd is falling toward the zero line.

The lack of a strong price decline so far is keeping EBAY above the 20-day simple moving average and right at the 12-month moving average, which is acting as upside resistance on the monthly chart.

The price hit a post-recession high of $28.37 in March and declined to a July low of 19.06, before recovering in August.

On the Person's chart, with weekly pivots, today's decline has brought EBAY to touch the midline for a third day in a row. A break below that level, $22.74, would suggest a serious decline is underway.

Person's Table
ppspps openupper pivotlower pivot
EBAY $22.79 $23.25 aug26 $24.08 +5.7% $22.03 -3.3%

Today's decline and signal came on higher volume, although far from being this month's peak.

Reversal Levels
  • $28.37, +24.5% (post-crash high)
  • $23.61, +3.6% (swing high)
  • $22.79 <== You are here.
  • $22.78, -0.04% (12-month ma)
  • $22.65, -0.6% (recent low)
  • $22.05, -3.3% (20-day ma)
Bottom line: I like EBAY as a bear play. I like it more below the 20-day moving average, but waiting until $22.05 is enter gives up a lot of profit, so that may not be advisable. Caution preserves profits, but risk is the mother of new profits. Disclaimer
Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment. No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.
  • psar - Parabolic Stop and Reverse
  • adx - Average Directional Index
  • pps - Person's Proprietary Signal
  • ma20 - 20-day moving average
  • macd - Moving Average Convergence-Divergence
  • sto - Fast Stochastic
About the glance: The colors indicate the state of each signal.
  • trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
  • adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
  • psar, pps, macd: green for bull mode, red for bear
  • sto: green for overbought, red for oversold, yellow for the neutral zone.
  • sto zone: green for bull phase, red for bear phase.

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