Smith (ds) Plc (LSE:SMDS) & Ebay 17/11/2020

#Gold #Dax We’re interested in the differing potentials against each of these shares. Essentially, packaging supplier DS Smith Plc look very capable of an increase in share price, doubtless reflecting the massive increase in online shopping during the pandemic. Online shopping giant, Ebay, on the other hand, appear to be suffering, thanks to repeated speculation of a Covid-19 cure.

This conflict of signals certainly justifies some scepticism for the long term future with DSSmith and we’re inclined to emplace a ‘safe’ trigger level against the share, essentially saying ‘only if the share price gets above this level shall we be convinced bottom is “in”.’  For DS Smith, presently trading around 341p, this implies a need for the share to exceed 376p to trigger a scenario, where longer term recovery toward 462p calculates as possible. Should such a level be exceeded, our secondary calculates at 543p and almost certain hesitation in any growth cycle.

For it all to go wrong, utterly wrong, the share needs retreat below 267p as this opens the gates toward 179 initially with secondary, if broken, at a bottom (hopefully) of 78p.

We’ve received a few emails regarding DS Smith and unfortunately, we’re a little concerned, due to their share price behaviour since 2018. Thus far, Covid-19 and increased demand for packaging appears not to be helping the price.

Hey, chart goes here

eBay (Nasdaq:eBay) It’s always tempting to use the term “Auction Site” when discussing eBay but reality nowadays is quite different. Instead, we suspect most people use eBay as a convenient place to shop from online retailers. A recent personal experience with “eBay Checkout” revealed an eclectic range of purchases, comprising Joint Supplements for Dogs, Worktop Joining clamps, Toyota Key Fob battery, a Solid State hard disk, and Classical Guitar strings. Not one of the purchases involved the thrill (aka inconvenience) of an auction, instead reflecting the results of a todo list. Prior to Covid-19, it’s likely 4 of these 5 items would have been purchased from conventional retailers with only a laptop hard disk being sourced online.

 

With the threat of a return to normality, eBay share price is already showing signs of nerves, doubtless due to fears the public shall urgently embrace the joy of visiting shops. From a personal viewpoint, perhaps influenced by our geographic location, we’re not entirely convinced. While nothing replaces the pleasure of visiting a music shop, constantly wondering which guitar needs purchased in the never ending search to find one which works, our UK post and packaging service has proven up to the task of a change in habits with delivery guys finding truly innovative ways of hiding boxes n delivery.

Leaving a car unlocked worked for most drivers and finding a box on the drivers seat stopped being a novelty. Opening the tailgate and finding a package under the dog rug was equally unexpected. Looking out the window and spotting a neighbour in the driveway, opening the car door to retrieve HER box, was actually irritating. Her excuse, ‘she always locks her car’, was especially annoying given we stay in an area where theft of birdseed by a Grey Squirrel will make the local newspaper.

 

The situation at eBay looks like weakness next below 45 dollars risks reversal to an initial $42 with secondary, if broken, calculating at a bottom of $33. To be fair, if this reversal cycle commences, we’d hope for a rebound before the $33 mark appears, ideally around the $37 price level. The share price needs above $52 to cancel this scenario.

Hey, chart goes here

FUTURES

Time Issued Market Price At Issue Short Entry Fast Exit Slow Exit Stop Long Entry Fast Exit Slow Exit Stop Prior
10:44:14PM BRENT 44.05 Success
10:46:29PM GOLD 1889.22 1864 1855.5 1819 1891 1897 1907.5 1922 1884 ‘cess
10:50:18PM FTSE 6424 Success
10:52:45PM FRANCE 5480 Success
10:54:47PM GERMANY 13160 13079 13053.5 12978 13152 13190 13220.5 13268 13125 Success
11:00:03PM US500 3632.77 Success
11:02:27PM DOW 29956 Success
11:04:34PM NASDAQ 12083
11:06:32PM JAPAN 26128 Success
16/11/2020 FTSE Closed at 6421 points. Change of 1.66%. Total value traded through LSE was: £ 7,904,150,149 a change of 37.1%
13/11/2020 FTSE Closed at 6316 points. Change of -0.35%. Total value traded through LSE was: £ 5,765,436,391 a change of -7.44%
12/11/2020 FTSE Closed at 6338 points. Change of -0.69%. Total value traded through LSE was: £ 6,228,749,824 a change of -14.5%
11/11/2020 FTSE Closed at 6382 points. Change of 1.37%. Total value traded through LSE was: £ 7,285,360,300 a change of -18.94%
10/11/2020 FTSE Closed at 6296 points. Change of 1.78%. Total value traded through LSE was: £ 8,987,595,429 a change of -12.81%
9/11/2020 FTSE Closed at 6186 points. Change of 4.67%. Total value traded through LSE was: £ 10,308,149,323 a change of 68%
6/11/2020 FTSE Closed at 5910 points. Change of 0.07%. Total value traded through LSE was: £ 6,135,966,574 a change of 1.03%

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