EBAY Could Be Magnetized To This Zone

  • February 8, 2005
  • Derrick Hobbs

EBAY
hit the bottom of a long term uptrending regression channel mixed
with a large Fibonacci price support zone this week from 70-76. I mentioned this
to my subscribers that companies like EBAY and AMZN are good “bounce” candidates
after this recent flush.   To establish my target I have a number of factors:

1)     
The 50% retracement of the December
high at 118.42 to the February 4 low of 74.92 is $96.67.

2)     
The 200 day simple moving average is
at $92.30

3)     
The median price of this uptrend (when
you take the OHLC for each day back through the last 18 months I come up with a
price around $97 (the middle line of the channel represents this #)

The confluence of these three
factors gives me a zone that price could be magnetized to from $92-$97.

A couple of ways this bounce
scenario would change:

1)     
in the event that EBAY closes below
$69 in any trading day. 

2)     
The 50% retracement of $96.67 would
change if we make a lower swing low point than that of February 4 of $74.92.

For now, I’m focused on that
$92-$97 zone for an upside target.

Thanks,

Derrik