Tag: Ebay

CFD Trading – EBay & Starbucks

Nicholas

EBAY Inc Stock Code EBAY.NAS

Outlook
Price closed below a recent support on Friday after dropping below the lower edge of the cloud three days ago. Conversion and Base lines also had a bearish crossover three day ago and this could be the start of another possible decline over the coming weeks. The cloud 26 days ahead is bearish and is widening as well. It is another indication of further price decline ahead. MACD had a bearish divergence warning earlier and has been weak, moving lower as price decline. MACD is currently bearish with both its line below the zero line.

Strategy
$38.48                Short Sell
$35.45                Price Target
$40.40                Risk Management Stop
3 weeks              Trade Duration

Starbucks Corporation Stock Code SBUX.NAS

Outlook
Price moved below the cloud on Friday.  Conversion and Base lines had a bearish crossover signal earlier. This could be the start of a price decline to the next base support area around $80. The future cloud has turned bearish and the width of the future cloud is widening as well, hinting of further price decline. MACD is bearish with both its lines below the zero level. The bearish trend could send price lower to the Fibonacci 50% of the advance from the start of 2019 to the high at $99.72 in late July 2019.

Strategy
$89.40                Short Sell
$79.75                Price Target
$92.60                Risk Management Stop
3 weeks              Trade Duration

CFD Trading 11 February 2019

Nicholas

Ebay Inc. Stock Code EBAY.NAS

Price reached a high at $35.66 recently. This was also a former high as well as a support turned resistance point. Recent price ranges are getting smaller. This is a hint of a price consolidation and a possible end of the rally. MACD supports this view with bearish divergence formed as price reached the high at $35.66.There is a big gap resistance zone from $35.66 to $37.77. Price is likely to test this resistance zone but should not go above it. If price is unable to close this gap zone, it is likely to decline. First support is at $32.38 and the next possible target is at $31.01. We would recommend selling into the gap resistance around $36.80 for a move to $32.38

Strategy

$36.80 Short Sell
$32.38 Price Target
$37.80 Risk Management Stop
3 weeks Trade Duration

General Motors Company. Stock Code GM.NYS

Outlook

Price reached a high of $40.74 and gapped down the next day, closing a gap that was created 2 days earlier. This is an exhaustion gap and it is a hint of a top in place. This high is also just above the Fibonacci 61.8% of the decline from $44.96 to $30.50. Price should not go above $40.10 and if this gap is not closed, price is likely to go down to the next support zone at $36.26 to $35.72. This support zone is formed by the combination of gap support, Base line and previous high. MACD supports this bearish view with a bearish divergence seen when price made the high at $40.74. We think it is a good opportunity to get a short position with a small stop loss for a decline to $36.26-$35.72.

Strategy

$38.90 Short Sell
$40.10 Price Target
$35.80 Risk Management Stop
3 weeks Trade Duration

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