Stock Chart Analysis EBAY

Posted by downtowntrader | 5/10/2007 12:12:00 AM | 0 comments »

Stock Chart Analysis EBAY

eBay Inc. (Public, NASDAQ:EBAY)

I posted on EBAY a while back, close to their earnings release showing how EBAY was approaching stiff resistance on the weekly chart. EBAY was extended at the time and it would of been difficult to break that resistance while being oversold. Well, it looks like EBAY is back to test a breakout and is in much better shape this time.

Here is a look at the daily chart. It broke out of the daily base and came back to test the breakout area as support. It appears that it will be successful and move to new highs, as long as the stock markets cooperate.

The more interesting chart is the weekly chart showing a three wave pullback that may be complete. EBAY is coming up to a downtrend line that may give it some trouble, but with the daily looking good, it appears that EBAY will break out on this attempt. Now there is no need to rush out and jump in, because usually these downtrend breakouts will come back and consolidate near the breakout area. However, it appears that the odds are decent that EBAY has put in a significant bottom that may hold for years.

Good Luck,