Stock of the day: eBay
06 June 2023
Most of the stocks got a correction yesterday, but there was one that just kept rising from the beginning to the very end of Monday’s trading session. It was not just a random rise either, but one that can trigger a proper, long-term buy signal. Our today’s hero is eBay and I want to present you a very promising buying opportunity.
In the past few months, eBay had been trading inside of the symmetric triangle pattern (red), but the time to end this formation has come. June started with a bounce off the lower line of the pattern, which introduced the bullish momentum and allowed the price to create three bullish days in a row. The last one from yesterday has been breaking the upper line of the triangle which, at the same time, is also a major down-trendline.
Before declaring a full bullish victory, it would be great to get a confirmation first. In this case, it would be today’s candle with a higher high and higher low than the one from yesterday. In theory, this confirms the breakout and would be a nice buy signal. As for the target, I reckon that the price reaching the green resistance would be a fair assumption.
Let’s see what today brings, but the price coming back inside of the triangle would be a mood killer and possibly an invitation to go short, based on the false breakout principle.