December 10 Chart of the Day - eBay
Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews
eBay (EBAY) is making headlines this week as analysts recently downgraded their price targets for the global online marketplace provider from $60 to $52.
The only thing we want to see is the price action technical analysis for their chart!
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Monthly Chart
On the monthly chart we can see that after setting its $81.19 all time high (ATH) back in 2021 price fell swiftly over the next few years back towards previous structure near $35.
Since then, price charged back to the upside before being firmly rejected in the $65 area.
Weekly Chart
On the weekly chart we can see with much more clarity the fall from ATHs, and the subsequent run back up. The bulls would like to continue making their series of higher highs and higher lows /aka/ an uptrend - but that remains to be seen.
Trading around $63.25 earlier today price may be attempting to continue upwards towards its ATH but has formidable resistance to climb through first in the form of previous support/resistance and a newly formed downward sloping trend line.
We've also noted a change control zone, long gray rectangle, roughly between $47 and $50.
Change control zones are one of the five price action tools we teach when charting anything. By definition, they are an area that represents where neither the bulls nor bears are in charge. Price can slash though the zone with seemingly reckless abandon, price can respect the top or bottom from outside it or within it. Or, price can trade aimlessly sideways within it. When price breaks away from the zone it can often get drawn back to it like a magnet. And in this case we see all of the above are true.
One thing for sure, price rarely, if ever, moves in a straight line.
Only time will tell for sure what price will do next...
We've layered in traditional Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.
Armed with precision oriented charts like these both traders and investors can formulate their respective plans.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- Change Control Zones
ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.
Take a look at the charts and let us know what you think. We'd like to hear from you in the comments sections.
