The thing about earnings is that you never know which way it will actually go. 

You see, earnings, whether The Street responds favorable or not to the report, rarely pays much attention to the technical outlook initially. I’ve seen so many excellent charts, very bullish charts in fact, get completely dismantled once the earnings report is released. 

But not all stocks make huge moves higher or lower once their earnings report comes out, and eBay (EBAY) is a good example of that.

If earnings does, in fact, disappoint tomorrow, this $40B company could provide you with a very nice setup to the short side for tomorrow morning. 

For me personally, I don’t hold trades through earnings. I refuse to. It is too much of a crap shot, and it is much more easy to make profits consistently without gambling on earnings reports. However, once that earnings report is out, it is fair game to trade. 

So check out the chart below. You have a nice double top-like candle pattern that has developed, and so far support is holding, but should it break tomorrow, it should provide us, traders, with a very nice shorting opportunity. 

Here’s the EBAY Trade Setup