After the binary options of eBay Inc. (NASDAQ:EBAY) hit the 52 week high a month ago, the price entered a sideways channel. Until Monday the price fluctuated between $41.84 and $38.00. But in Tuesday the binary traders saw another record, after the price advanced to a six-year high of $43.94.
Yesterday, the binary traders joined in a bearish game and started to bet on ‘put’. That gave the binary options some time retracing 23.6% of the $39.6 to $43.94 move. For a couple of times, the price went below the support, located at $42.92, but at the end of the session stopped at $42.95 and called it a day.
Today’s potential downside move is towards $42.30 and the EMA9 at $41.69, after that. If the binary market wakes up in a bullish mood, and keeps it up through the whole session, potential levels are at $43.85 and $44.97
On a longer-term view, some binary analysts see an even bigger potential in eBay, and have mentioned that they expect to see the price rise as high as $50. The main reason behind this is the constant rise of the PayPal payments. Even the eBay CEO said that PayPal’s revenues might soon outweigh those coming from eBay’s auctions.
More and more business clients prefer to make their transactions through PayPal, which is cheaper than using the traditional payment processing giants such as Visa and MasterCard.
The information in the above analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.