Can Ebay’s all time Highs Continue?
Ebays stock price has been surging in the last few weeks reaching to their highest price point for this year recovering all their losses from COVID 19 and even going higher. We will explore some of the technical details for Ebay and find out if they point towards a continued run or and end to their current stock surge.
Arnaud Legoux Moving Average
The Arnaud Legoux moving average in my opinion is the king of all the moving averages for two primary reasons it is highly responsive to movements in the tread and it is also a-lot does a better job at smoothing out a tread. This was a common draw back investors were having with traditional moving averages. Only made in 2009 the Arnaud Legoux moving average is new to the moving average family but insanely effective, as it is swifter eliminating the price lag that is often associated with moving averages. The fundamentals of the moving average remain the same however if the stock price in blue line moves below the Arnaud Legoux moving average in the red line it highlights a bearish trend is occurring indicating prices may fall. This is the case with Ebay as we can see the stock price has stared to cross the Arnaud Legoux moving average.
Balance of Power
The Balance of power indicator is very simple when the line is above 0 it indicates that buyers have dominance over sellers and when it is below 0 it indicates that sellers have dominance over buyers. The indicator moves between 1 at the very highest and -1 at the very lowest the indicator tracks how strongly price trades to extreme high and low levels. The Reading Ebay has is -.16 which indicates sellers starting to dominate the buyers in the market pointing to the conclusion that Ebay shares may move lower.
Relative Strength Indicator
The Relative Strength Indicator (RSI) is a specific indicator that is used to detect if a stock is over sold or over bought. The RSI is calculated using average price gains and losses over a given period of time. The default time period is 14 periods with values bounded from 0 to 100. A reading of above 70 means the stock is overbought highlighting a bearish signal that the stock might fall in price. This is the case with Ebay indicating that it might be overbought, as it is right at the top of the RSI Indicator level at 72 indicating that it is likely to fall in the future.