F.G.R. asked the following question in "Comments" of my post over the weekend:
"Tom C., great trading and analysis. I am thinking EBAY is a good short here using your techniques. What do you think?"
First, I cannot give any advice on buying or selling securities - you have to make your own decisions.
I can tell you what I see when I look at the chart. EBAY has several factors that make it look bearish [to me] at this point:
1.) It is below the 34 and 200MA.
2.) It is below the 2005 low.
3.) Last week it printed a "hanging man" type candle.
Note how price broke the 2005 low in mid-May, then pulled back to re-test the 200MA as resistance, and finally fell back below the 2005 low.
If I traded EBAY, a logical entry would be a break of last week's low. The target would be the Fibonacci extension of the 2005 high to low. I would watch for probable support and a reversal at the 1/2-way point between the low and the Fibonacci extension. My stop would be above the high of week 06/11/06.
I am NOT saying I will trade EBAY, and again this is not trading or investment advice. Just [my] chart analysis.
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Tags:
Trader-X, Stocks, Fibonacci, Trading, EBAY
1 comment:
Did you trade it Tom C? You would have gotten a quick $2! Good posts, love the blog.
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