Playing a range in Ebay

Now that earnings are behind us in $EBAY I thought I would look at the chart to see what opportunities exist for a new position. Several things stood out to me when viewing the Daily chart:

First, there is the gap up on earnings and now a basing in the box action between 42 and 39. What I really like is the mild pullback on declining volume, that is what you want to see.

What I don’t like however is the Stochastics topping and trying to roll over – this causes me to pause some. Also, the RSI is drifting down with price. My plan is to see if the stock can hold the 40 level, if not, a bounce at 39 (playing the reaction there) is they play.

 

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