Stock of the day: eBay
17 March 2023
On Friday, most of the instruments are on the rise, however, we wish to shine the light on the one that is still trading in negative territory, rather than one with a buy signal. You know, just in case this whole bullish correction is a false one and we shall see more pain in the upcoming weeks.
Our today’s hero is eBay who is rising today, but its overall situation is quite grim. There are two key formations here that point to the south. The first one is the inverse head and shoulders pattern (yellow) which happened to be a fake one, as after the breakout of the neckline in January, the price failed to permanently climb higher and came back below the neckline in March.
In addition to the iH&S pattern, we have a flag formation here (red), who is a trend continuation pattern and, as expected, resulted in the breakout to the downside. With all that, the sentiment is negative and as long as the price stays below the black neckline, chances for a further slide are much higher.