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Christian Tharp, CMT

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Five Star Stock Watch: eBay

eBay's stock has gone next to nowhere over the last year.

It's one of the longest sideways moves that you might see on a stock. How long will it last?

eBay released its earnings last night and maybe it gave the market enough ammo to finally break it out if its range. The analysis below highlights the levels to watch on the stock.

The company: eBay, Inc.

Ticker Symbol: (NASDAQ: EBAY)

Sector: Services  

Industry: Catalog & Mail Order Houses

eBay provides online platforms, tools, and services to help individuals and merchants in online and mobile commerce and payments in the United States and internationally. Its Marketplaces segment operates ecommerce platform eBay.com; vertical shopping sites, such as StubHub, Fashion, Motors, and Half.com. 

Related: Five Star Stock Watch: Tesla

The company’s Payments segment offers payment and settlement services for consumers and merchants on and off eBay Websites and other merchant Websites. This segment operates PayPal, which Bill Me Later, Zong and BillSAFE.

Please take a look at the 18-month chart of eBay below with added notations:

Since the beginning of 2013 eBay has been trading within a long, 14 percent range. Other than a quick fakeout in November, the stock has remained within its range.

The downside level on eBay is relatively clear at $50. A break below that mark should send the stock considerably lower. The topside is a little less clear, but the general resistance area is around $57. A solid move above that level should mean higher prices for the stock.

Related: Five Star Stock Watch: Starbucks

eBay released its earnings last night after the bell.

No matter what your strategy, or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

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