Ebay has been trading in a wide rectangle for almost a year. The 50 dollar level is very significant as outlined, the stock always finding buyers there.
The MACD lines looked really messy, without any pattern, or at least i couldn't figure it out. No pattern in volume either for my eyes (rookie eyes!!!). Therefore, I plotted only the MACD histogram which looks really nice, with many bullish divergences when the stock was at the buy zone.
At the present time, a bullish divergence is taking shape. A reverseal candle (like in the past) would be the next signal. A move up after that candle would be the kick off of a rally.
A strong close below this buy zone would close this trade and would make me aware of the short side.
The MACD lines looked really messy, without any pattern, or at least i couldn't figure it out. No pattern in volume either for my eyes (rookie eyes!!!). Therefore, I plotted only the MACD histogram which looks really nice, with many bullish divergences when the stock was at the buy zone.
At the present time, a bullish divergence is taking shape. A reverseal candle (like in the past) would be the next signal. A move up after that candle would be the kick off of a rally.
A strong close below this buy zone would close this trade and would make me aware of the short side.
