Don't Ignore This Chart

Ebay Reverses Near Key Retracement

EBAY shows signs that the correction is ending and the bigger uptrend is resuming. First, the long-term trend is up because the stock hit a 52-week high in July. The stock then corrected with a move back to a support zone around 34-34.5. Notice that broken resistance and the June lows mark support here. Also notice that the decline retraced 61.8% of the prior advance with a falling channel (blue lines). Both the pattern and the retracement amount are typical for corrections within a bigger uptrend. The stock surged the last two days and looks poised to break the upper trend line. 

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--Arthur Hill CMT

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