Bounce off support yesterday brings a safe entry opportunity for Ebay
at a good support level
. Any institutions which are long this stock should be buying up more at these levels; otherwise, capitulation will ensue. I would look for at least a retest of 52.00. We have some bullish
momentum divergence on the histogram and stochastic
, and with the markets taking a noticeable breather today, Ebay
is holding some buying pressure. One would want to keep stops fairly tight, but give it some room to come back and retest actual lows from 11-26. I would think stops around $46 should be enough and still give you a nice Risk/Reward ratio.