Ol’ favorite Internet stock Ebay, Inc. breaks out ($EBAY)

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Every day on this blog, we post a free stock trading video that highlights a few ETFs or stocks on our radar screen for potential swing trade entry in the coming days (without the detailed entry and exit prices provided in our Wagner Daily newsletter). On June 14, in this blog post, one of the swing trade setups discussed in our trading video was a possible buy entry into Ebay, Inc ($EBAY). The basic setup was a breakout buy entry if EBAY rallied above the downtrend line shown on the daily chart below:

A few days after highlighting the trade setup, EBAY triggered a long entry after it broke out above the downtrend line on increasing volume, closing near the high of the day. The breakout entry is shown on the chart below:

If you missed the breakout entry, a secondary buy entry into EBAY can still be found if the stock pulls back to new support of its breakout level (around the $41.50 area).  A protective stop can be placed below the intraday low of the June 14 breakout day. Assuming the broad market remains healthy, we look for EBAY to rally about 10% higher as a short-term price target.


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Deron Wagner

Deron Wagner is a professional trader, author of several ETF trading books, and the Founder of Morpheus Trading Group. Since 2002, he has been sharing his proven swing trading strategy with thousands of traders around the world. He has appeared on CNBC, ABC, and Yahoo! Finance Vision television networks, and is a frequent guest speaker at various global investing conferences.

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