Approaching Support- eBay

Published on Friday, 30 July 2010 04:16 Written by Christian Paolinetti

New York, July 30th (TradersHuddle.com) - Shares of eBay Inc. (NASDAQ:EBAY) are trading very close to calculated support at $19.92 with current price action closing at just $20.77 places the stock price near levels where traders will start paying attention.

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 current stock range is defined by current calculated support defined at $19.92 and by the resistance level at $21.54, which should be used by traders planning their trades.

Traders wanting to establish a position should place close attention to eBay's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $21.54 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.