Tuesday, 10 July 2012

EBAY. Testing Support

Trade Update:

EBAY  share price has lost momentum recently since the breakout from the Ascending Triangle I described in earlier posts.
It is currently testing the support level of $40. The recent downward trend in prices has formed a Flag Pattern as described on the chart. 

Normally a Flag Pattern is a continuation pattern in a rising uptrend.

If prices can hold above the  $40 support level a breakout of price above the upper downsloping trendline of the Flag should then see a resumption of the trend to the upside with an increase in share prices.

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