Ebay Inc American stock has a clear bullish bias with new buy opportunities created at new monthly and weekly demand levels and imbalances. Shorts are not allowed with new demand imbalances created on both the monthly and weekly charts.
Supply and demand technical analysis and our set of rules located new demand zones around $30 per share on the monthly chart and $34 and $28 on the weekly chart.
As supply and demand traders, we do not need to pay attention to the news, fundamentals or any earnings reports. Once a big timeframe imbalance has gained control, earnings do just the opposite and react strongly to those imbalances. Why is it that you see positive earnings and then the underlying stock drops like a rock, or a negative earnings announcement and the stock rallies like a rocket out of control? You are probably missing the fact that there are big imbalances in gaining control.
If you still want to learn about the company’s fundamentals, the last few earnings releases have been great. There are changes coming changes to the company, Ebay has two major activist shareholders: Elliott Management and Starboard Value. Elliott Management has the largest stake, with $1.4 billion of eBay Inc stock (or more than 4% of the outstanding shares) and has been the leader when it comes to pushing for action. In a letter to management, the investment firm called for spinning off StubHub and the online classified businesses to unlock value for the owners of EBAY stock.
Does that help you in your analysis? It doesn’t help me really 🙂
Unless you are doing very short term trading and scalping, you should not worry about fundamentals or earnings announcements.
You can use these imbalances to plan your trades in lower timeframes. There are several ways of buying stocks. When trading stocks, you can buy shares of the underlying stock or use options strategies to go long or short at these specific supply and demand levels, long calls or long puts or spreads.
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