For today's chart we've chosen to take a look at eBay because several technical indicators are suggesting that we could see an increase in upward momentum. As you can see from the chart below, the 50-day moving average (green line) has recently crossed above the 200-day moving average (pink line). This bullish moving average crossover is one of the most common events used by technical traders to signal the start of a significant uptrend.
Like all technical signals, it is better if other indicators confirm the direction of a predicted move. For this reason, we've added the Parabolic SAR, which triggered a bullish signal today. This is shown by the new dot placed below the price. The reversal of the dots illustrates the shift in momentum and is likely to be used by many technical traders as confirmation of the upward move predicted by the moving averages.
Nothing contained in this publication is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.