Interesting Technical Analysis finding for EBAY INC (NASDAQ:EBAY)

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.

Technical Analysis Observations

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Overall EBAY gets a technical rating of 8 out of 10. 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.

• Both the short term and long term trends are positive. This is a very positive sign.
• A new 52 week high is currently being made by EBAY, which is a very good signal! However, this is in line with the S&P500, which is also trading near new highs.
• In the last month EBAY has a been trading in the 51.38 - 55.35 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.
• Looking at the yearly performance, EBAY did better than 80% of all other stocks. However, this overall performance is mostly based on the strong move around 4 months ago.
• EBAY is an average performer in the Broadline Retail industry, it outperforms 68% of 33 stocks in the same industry.

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

Looking at the Setup

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:EBAY has a 9 as its setup rating, indicating its current consolidation status.

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 54.41. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 53.56, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive 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.

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 technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

Our Breakout screener lists more breakout setups and is updated daily.

Keep in mind

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.