Don't Ignore This Chart!

Ebay Reverses Near Key Retracement

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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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Arthur Hill
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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