EBAY technical outlook- and another part of the puzzle

On the left hand, the EBAY weekly chart and, as you can see, the same pattern all over the place – snap back rally turning into a downwave and here again heading for the weekly 13. The earnings which were just released came in worse than expected and the stock trades after hours below 15. The stock is not expensive, with quarterly earnings at 46 cent. If that can be stabilized on a yearly basis, the stock trades at 10 times earnings even a bit lower. On the other hand, we have to discount that earnings might be contracting going forward. But still, this stock belongs to the cheaper group, which is worth putting it on the radar screen for a buy once the lows are in place. Here as well we need at least one weaker weekly close after this weeks close required.


~ by behindthematrix on October 15, 2008.

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