There are signs that NASDAQ:EBAY may be ready to breakout.

EBAY INC (NASDAQ:EBAY) has been identified as a Technical Breakout Setup Pattern by our stock screener. This pattern typically occurs when a stock takes a pause after a significant rise, indicating the possibility of a continuation in the trend. While it's impossible to predict with certainty, it might be beneficial to monitor NASDAQ:EBAY.

What is the technical picture of NASDAQ:EBAY telling us.

As part of its analysis, ChartMill provides a comprehensive Technical Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various technical indicators and properties.

We assign a technical rating of 9 out of 10 to EBAY. Both in the recent history as in the last year, EBAY has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long and short term trends are both positive. This is looking good!
• EBAY is part of the Broadline Retail industry. There are 34 other stocks in this industry. EBAY outperforms 75% of them.
• EBAY is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• EBAY is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
• When comparing the yearly performance of all stocks, we notice that EBAY is one of the better performing stocks in the market, outperforming 84% of all stocks. However, this relatively good performance is mostly due to a recent big move.
• In the last month EBAY has a been trading in a tight range between 50.88 and 52.93.

For an up to date full technical analysis you can check the technical report of EBAY

Why is NASDAQ:EBAY a setup?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:EBAY currently holds a 9 as its setup rating, suggesting a particular level of consolidation in the stock.

EBAY has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 52.57. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 52.41, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Trading setups like NASDAQ:EBAY

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this 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.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.