I charted EBAY on August 19, 2009 at 1:10 pm when it was trading at $21.10, off its low of $20.55 earlier in the morning.
I’m debating if I should enter a half order here. EBAY found support off of the old trend line higher highs it gapped above in July. If that trend line becomes support this could be a great place to start an EBAY position. The target I’d feel more comfortable using as an entry point would be back down towards its longer trend line of higher lows. That’s around $17.50 right now.
The upside has potential resistance at the 10 and 20 day moving averages (dma) which are about to have a bearish cross over as the 10 dma moves below the 20 dma. Using the widest trend lines for the past six months EBAY seems to be a 50/50 guess for direction in the near term. Longer term the trend is still pointing up, but a better entry point might not be far away in time or price.
