Will EBAY INC Break Out? A Technical Analysis Perspective.

Our stock screener has identified EBAY INC (NASDAQ:EBAY) as a potential breakout candidate. This technical breakout setup pattern occurs when the stock consolidates after a strong uptrend. While the actual breakout is uncertain, it may be worth keeping an eye on NASDAQ:EBAY.

Insights from Technical Analysis

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.

Taking everything into account, EBAY scores 8 out of 10 in our technical rating. 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 currently trading near its 52 week high, which is a good sign. The S&P500 Index is trading in the upper part of its 52 week range, but not near new highs, so EBAY is leading the market.
• In the last month EBAY has a been trading in the 49.41 - 52.88 range, which is quite wide. It is currently trading near the high of this range.
• Prices have been consolidating recently, this may present a good entry opportunity.
• When comparing the yearly performance of all stocks, we notice that EBAY is one of the better performing stocks in the market, outperforming 82% of all stocks. However, this overall good ranking is mostly due to the recent strong move.
• EBAY is part of the Broadline Retail industry. There are 34 other stocks in this industry, EBAY did better than 66% of them.

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

Why is NASDAQ:EBAY a setup?

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NASDAQ:EBAY exhibits a 9 setup rating, indicating its consolidation status in recent days and weeks.

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 52.41. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 51.32, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading setups like 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.

Of course, there are many ways to trade or not trade NASDAQ:EBAY and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

More breakout setups can be found 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.