Ebay is extending strongly higher after beating earnings at the end of July, which we see it as a wave 3 of an ongoing five-wave bullish impulse. Currently it can be trading in subwave (5) of 3 that can stop around 100 area, and from where we may see a new corrective pullback in wave 4, as eBay executives sell shares worth over 5.5million. So soon watch out for a new higher degree wave 4 pullback before the bullish trend for wave 5 resumes.
A bullish impulse in Elliott Wave Theory is a five-wave upward movement showing strong trend momentum. Wave 1 starts the advance, Wave 2 corrects part of it, Wave 3 is the longest and most powerful leg, Wave 4 consolidates without overlapping Wave 1, and Wave 5 is the final push before a larger correction. The key rules are: Wave 2 never fully retraces Wave 1, Wave 3 is never the shortest, and Wave 4 doesn’t enter Wave 1’s price zone. This pattern reflects shifting market psychology from early accumulation to final optimism.
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