EBAY: Strong Buy in My Radar List - Feb. 26Technical Analysis (TA) & Price Action
eBay (EBAY) is trading within a strong ascending channel, approaching key resistance near $71.40. The stock has consistently printed higher highs and higher lows, maintaining its bullish structure.
Key observations:
* Trend Structure: EBAY is in a well-defined uptrend, respecting the channel’s support.
* Support & Resistance:
* Major Resistance: $72.50 (CALL Wall) → Breakout level.
* Key Support: $70, followed by $69 (Gamma Wall).
* Stronger Support Zones: $67.52 (Critical PUT Support).
* MACD Indicator: Bullish, signaling continued strength.
* Stoch RSI: Extremely overbought (97.74), suggesting a potential short-term pullback before continuation.
Options Flow & GEX Analysis
The GEX (Gamma Exposure) indicator signals high positive gamma above $70, which could fuel a breakout if sustained. However, downside risk is limited as PUT support is concentrated near $65.
* IVR (Implied Volatility Rank): 80.1, with IVx avg at 49.2%, indicating heightened volatility.
* Call Side Bias: 10.9% of total options flow, suggesting a moderate bullish tilt.
* Key GEX Levels:
* CALL Resistance / Gamma Wall: $72.50 → Break and hold could send EBAY toward $75.
* PUT Support Zone: $65 → Breaking below would invalidate the bullish trend.
Trade Plan & Suggestions
📌 Bullish Trade Setup (Preferred Play)
* Entry: Above $70.50 with volume confirmation.
* Target 1: $72.50
* Target 2: $75 (Major resistance).
* Stop-loss: Below $69
📌 Bearish Alternative (Hedge Play)
* Entry: Below $69 with selling pressure.
* Target: $67.50 → $65
* Stop-loss: Above $71
Final Thoughts
EBAY is trading at a key inflection point. If it can break and hold above $72.50, we could see a gamma squeeze toward $75. However, given its overbought Stoch RSI, a small pullback before continuation would be ideal. Options data supports bullish bias, but traders should watch volume for confirmation.
📢 Risk Management: Manage position size carefully, especially with increased volatility.
🔹 Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always conduct your own research and manage risk accordingly before trading.
