eBay Is Close to its 50 Day Moving Average

Published on Friday, 15 June 2012 08:16 Written by TradersHuddle Wire

New York, June 15th (TradersHuddle.com) - eBay Inc. (NASDAQ:EBAY) closed the trading day at $40.13, near its 50 day moving average that is set at $39.31. eBay's price action is just above this important support level, providing a trading opportunity.

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.

The peaks and troughs algorithm shows calculated support at $38.00 and calculated resistance at $41.72. These levels should also be evaluated when planning trades, as they provide an insight into the latest price action.

Traders wanting to establish a position on eBay should look for evidence of buying near the 50 day moving average, and open this position as close as possible to this important level. Also, they need to consider the latest range defined by the peaks and troughs algorithm for insights on other key levels that might impact an upside or downside move.