Sticking With Ebay

(This post was supposed to go up Friday, but didn't due to Blogger publishing difficulties)

There hasn't been a lot of news on the fundamental front for eBay lately. I have heard anecdotally that listings activity has been solid. And yesterday, PayPal announced it reached a settlement with 28 states. But this update was prompted more by the technical action of the stock.

If you look at the recent chart, you see that after bottoming in August, the stock rallied back above its 50-day and now looks like it has successfully converted that resistance into solid support. Last week the stock found good support along this moving average before gapping higher on Tuesday (9/26) following a Goldman Sachs upgrade.

The stock has had 2 big up days this week, and both came on notable increases in volume, a bullish sign. Money flow has also turned positive after a prolonged slump. So EBAY still looks okay to me, and I think it will continue to work higher. Remember, this stock is still more than 40% off its 52-week high. I'm not saying its going back there in a hurry, but I'll take it one day at a time.

long EBAY, GS