Bottom Fishing on eBay

ebay New York, October 4th ( - Shares of eBay Inc. (NASDAQ:EBAY) ended the trading session higher by $0.19 or 0.39% from its previous close. eBay's price action in the session formed what is considered to be a Hammer, where bears drove prices lower intraday. However, the strong finish indicates that bulls regained control, forming a trend reversal.

eBay Inc. (NASDAQ:EBAY) operates an online auction community. The service is used to buy and sell products and services such as coins, collectibles, computers, memorabilia, stamps and toys, and sporting tickets. eBay also offers, through its subsidiary PayPal, secure online payment services.

eBay's stock has been trading in a well defined range with calculated support at $47.36 and resistance at $50.65. This range can be used by traders to plan their next moves.

Traders wanting to establish a position in eBay or traders that are already holding the stock can use the hammer formation to their advantage, since the pattern signal a potential bullish trend reversal.

The Hammer is an important candlestick pattern, as it can mark bottoms and support levels. Further buying pressure, and preferably on expanding volume, is needed before acting, as heavy volume will serve to confirm the validity of the reversal.

In the case of eBay, traders who want to add to their positions or start a new position, need to watch for confirmation of the reversal. Below a Hammer illustration:

Related Partner Headlines

    You could minimize risk by trading in stock sectors rather than individual stocks. Find out why ETFs are the hottest investment vehicle on the planet. Try ETF Profits for FREE NOW!

    TradersHuddle Search

    Stock Search:

    Site Search:


    Recent Trading Ideas

    Latest Partner Headlines

    Stock Market

    o Dow Jones 17,720.29 ▲227.36 (1.30%)
    o S&P 500 2,077.06 ▲29.02 (1.42%)
    o NASDAQ 4,860.86 ▲95.08 (2.00%)

    Dow Jones

    Company ID [INDEXDJX:.DJI] Last trade:17,720.29 Trade time:3:36PM EDT Value change:▲227.36 (1.30%)

    S&P 500

    Company ID [INDEXSP:.INX] Last trade:2,077.06 Trade time:3:36PM EDT Value change:▲29.02 (1.42%)


    Company ID [INDEXNASDAQ:.IXIC] Last trade:4,860.86 Trade time:3:36PM EDT Value change:▲95.08 (2.00%)
    Copyright © 2013 All Rights Reserved.