Indications Suggest NASDAQ:EBAY Could Be on the Verge of a Breakout.

We've identified EBAY INC (NASDAQ:EBAY) as a potential breakout candidate based on our stock screener's analysis. This breakout setup pattern suggests that after a strong uptrend, the stock is currently consolidating, potentially signaling a continuation of the trend. Keep an eye on NASDAQ:EBAY for further developments.

Analyzing the Technical Aspects

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

Taking everything into account, EBAY scores 7 out of 10 in our technical rating. In the last year, EBAY was one of the better performers, but we do observe some doubts in the very recent evolution.

• The short term is neutral, but the long term trend is still positive. Not much to worry about for now.
• When comparing the yearly performance of all stocks, we notice that EBAY is one of the better performing stocks in the market, outperforming 85% of all stocks. We also observe that the gains produced by EBAY over the past year are nicely spread over this period.
• EBAY is part of the Broadline Retail industry. There are 32 other stocks in this industry. EBAY outperforms 77% of them.
• EBAY is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so EBAY is lagging the market slightly.
• In the last month EBAY has a been trading in the 61.16 - 66.52 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.

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

How do we evaluate the setup for NASDAQ:EBAY?

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various 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. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 63.05, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading breakout setups.

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

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.

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.