eBay Ready to Breakout?

NASDAQ: EBAY | eBay Inc. News, Ratings, and Charts

EBAY – An ascending triangle pattern has formed in the chart of eBay (EBAY). This is considered a bullish pattern. The stock is expected to breakout soon. Read more to learn how to profit from this trade.

An ascending triangle pattern has emerged in the chart of eBay Inc. (EBAY). This is a bullish pattern, which means I’m looking for a breakout.

EBAY operates a leading online eCommerce marketplace that enables consumers to purchase goods globally. eBay has more than 170mn active users. The company also operates Stubhub, Half.com, brands4friends, and a number of classifieds businesses globally.

The company is seeing strong Marketplace growth and strength in its promoted listings advertising offering. Management has undertaken growth initiatives to enhance the seller experience by offering innovative seller tools. The company’s push into mobile should drive growth going forward.

EBAY has a healthy balance sheet with $3.8 billion in cash and only $18 million in short-term debt as of the end of last year. The company is also quite profitable with a net profit margin of 52.9%.

Revenue was up 17.5% over the past year, while earnings soared 84%. The stock is also trading at a low multiple with a trailing P/E of 17.66 and a forward P/E of 15.48. The stock has shown mixed performance so far this year, but has been trending up since early March.

Take a look at the 1-year chart of EBAY below with added notations:

 

Chart of EBAY provided by TradingView

EBAY has been in rally mode for the past month or so, while climbing a trendline of support (green). The stock recently stalled at the $64 resistance (red), just as it did back in February. And an ascending triangle was formed.

A solid close above that $64 area should lead to much higher prices for EBAY. A possible long position on the stock would be on a breakout above that $64 level with a protective stop placed under it.

Want to Discover More Great Trades?

I have explored virtually every flavor of technical analysis and chart pattern known to mankind. The sad fact is that the vast majority of them don’t work at all.

That is why I recently put together this special report to help investors focus on the only 5 chart patterns that matter…the ones that lead to the most timely and profitable stock trades. Click below to get your copy now!

5 WINNING Stock Chart Patterns

Have a good trading day!

Good luck!

Christian Tharp, CMT

@cmtstockcoach


EBAY shares were unchanged in premarket trading Friday. Year-to-date, EBAY has gained 24.15%, versus a 9.51% rise in the benchmark S&P 500 index during the same period.


About the Author: Christian Tharp


I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group and Yolo Publishing. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
EBAYGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

The Fallacy of “Peak Everything”

Connected to the inflation conversation is the theory of “Peak Everything”. This idea is making its rounds through the investing world with shock waves of trading activity. Let’s talk about what it is...What it really means for the future of the S&P 500 (SPY)...And why, we will end up on the right side of action. Read on below to find out more…

:  |  News, Ratings, and Charts

Could the Fed’s Rate Reversal Lead to More Volatility in the Stock Market?

Inflation has become a recurring theme in my comments due to a notable rise in inflation metrics and how they have affected the S&P 500 (SPY). The Fed has consistently spoken of inflation being transitory over the past couple of months, which has resulted in investors becoming less concerned over higher prices. But it appeared that the Fed reversed course as it is now, indicating it would raise rates ahead of schedule. This created more volatility in the markets leading to a tough day on Friday. But, if you look closer at their remarks, not everything is as it seems. I will expand on my point below. But first, let's recap the past week in the markets. Read on below…

:  |  News, Ratings, and Charts

2nd Half of 2021 Stock Market Outlook

The stock market (SPY) has continued on a bullish path to start 2021. Yet it is not quite the same glorious bull run we enjoyed from the lows of last year. This market has become more volatile and with less upside potential. However, there is still plenty of money to be made if you look in the right places. That is the very nature of the new presentation I put together. So read on for more info…

:  |  News, Ratings, and Charts

3 Top Biotech Stocks To Bolster Your Portfolio

Illumina (ILMN), Jazz Pharmaceuticals (JAZZ), and Amgen (AMGN) are 3 of the top biotech stocks. The sector has been an underperformer over the last few years but could start outperforming given the aging population, low valuation, and growth potential.

:  |  News, Ratings, and Charts

2nd Half of 2021 Stock Market Outlook

The stock market (SPY) has continued on a bullish path to start 2021. Yet it is not quite the same glorious bull run we enjoyed from the lows of last year. This market has become more volatile and with less upside potential. However, there is still plenty of money to be made if you look in the right places. That is the very nature of the new presentation I put together. So read on for more info…

Read More Stories

More eBay Inc. (EBAY) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All EBAY News