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Thursday, October 9, 2014

EBay Stock Finds Support as the Price Rallies

EBay stock (NASDAQ:EBAY) has found support around the EMA 200, as a potential death cross was averted and the price rallies from there. The price gapped up seriously at the end of September 2014, and it later dropped. But the price has turned upwards after testing the EMA 200, which acts as a great support for bullish effort.

In the chart, 4 EMAs are actually used and they are the EMAs 10, 20, 50 and 200. The color that stands for each EMA is shown at the top left corner of the chart. The market has been volatile seriously, but the recent action of the EMAs shows that the near-term bias is bullish. Transient noises ought not to mislead a professional trader, especially one who respects the big picture. It is shameful for an expert swing trader to be misled by a mere fleeting noise in the market. It is shameful for a professional hunter to report being chased by a rodent.

From here, the price may go upwards to test the distribution territory at 60.00 to the upside. The distribution territory may even be breached to the upside as the market goes towards another distribution territory at 70.00.

This forecast is ended by the quote below:

"You have all it takes to be a fantastic trader. You might just need someone to boost you up and give you the confidence to triumph." - Louise Bedford 

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Learn from the Generals of the Markets: Market Generals



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