Bearish Reversal Pattern On The eBay Chart

By | March 11, 2019

Shares of eBay are up 35% from their December low. They have recovered about 50% of their sharp decline in 2018. But over the last several weeks a bearish reversal pattern has formed on the weekly chart.

It suggests an intermediate term top is in place.

The eveningstar is a three-period bearish reversal pattern. It consists of a large up-day candle, followed by a doji-like candle, and completed by a large down-day candle. It is a visual representation of a shift in trader sentiment from bullishness to bearishness.

There is also, an open gap between $32 and $31 that occurred in January this year. If eBay shares continue to slip lower the magnetic properties of the January gap will increase, potentially drawing the stock price in to fill the void.

A fairly reliable reversal pattern that forms after a strong run and at a potential level of Fibonacci resistance is one that demands particular attention.

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