A technical analysis of EBAY INC.

Our stock screener has detected a potential breakout setup on EBAY INC (NASDAQ:EBAY). This breakout pattern is observed when a stock consolidates following a strong upward movement. It's important to note that this pattern is based on technical analysis, and the actual breakout outcome is uncertain. However, it might be worth keeping an eye on NASDAQ:EBAY.

Insights from Technical Analysis

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

Taking everything into account, EBAY scores 7 out of 10 in our technical rating. This is due to a decent performance in both the short and longer term time frames. Compared to the overall market however, EBAY is a bad performer.

• The long and short term trends are both positive. This is looking good!
• In the last month EBAY has a been trading in the 40.63 - 44.27 range, which is quite wide. It is currently trading near the high of this range.
• EBAY is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so EBAY is lagging the market.

Our latest full technical report of EBAY contains the most current technical analsysis.

How do we evaluate the setup for NASDAQ:EBAY?

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NASDAQ:EBAY is 9:

Besides having an excellent technical rating, EBAY also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 44.37. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 43.37, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for EBAY in the last couple of days, which is a good sign.

How to trade NASDAQ:EBAY?

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

More breakout setups can be found in our Breakout screener.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.