Ebay Chart Discussion

Posted by Blain Reinkensmeyer
January 25, 2007 at 11:17 am

After Ebay (EBAY) reported earnings today worth making the street cheer, the stock shot up, and currently is up some 11%. The stock has traded as high as $33.80 today before settling down in around $33. I post the chart though to note the nice cup and handle formation the stock is setting up. Also note the $34 resistance. Personally, I would like to see the stock sell into part of the gap and fill it, as this would be an excellent time to pick up some shares if you are a believer in Ebay’s overall strength. I would look to pick up some shares around the 50 DMA, or with a break above $34 on strong volume. A rest though for a few weeks would not be a bad situation.

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