EBAY About To Trigger A SELL Short Signal
Ebay has been trending down all year and has recently rallied to the 50 week moving average as seen in the above chart. Notice the stochastics are in the sell zone and have just crossed giving us a sell signal.. In the lower panel is a ratio chart or relative strength chart of EBAY vs the SPX.. Notice how weak the ratio is and how it's been trending down all year confirming that EBAY is underperforming the overall market.. If you look at a daily chart, you will see that EBAY is sitting on it's 50 day moving average.. I'd look to get short if we get two closes below this average because that would mean daily support is being taken out and when you combine that with the weekly setup, the odds favor a sell off...
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