"This one is doing much better and is going much higher," he said.
Let's check out the charts and indicators of the e-commerce company.
In this daily bar chart of EBAY, below, we can see that prices declined for four months into the end of 2018 and then soared strongly from January to now. Prices are trading above the rising 50-day moving average line and the rising 200-day moving average line. In early March we can see that the 50-day line crossed above the 200-day line for what is commonly called a (bullish) golden cross.
The daily On-Balance-Volume (OBV) line has moved up from late December to this month confirming the price gains. The trend-following Moving Average Convergence Divergence (MACD) oscillator is above the zero-line and poised to turn higher to a fresh outright-buy signal.
In this weekly bar chart of EBAY, below, we can see a bullish alignment of our indicators. Prices are above the rising 40-week moving average line. The weekly OBV line shows gains from December and confirms the price movement. The MACD oscillator is in a bullish configuration above the zero-line.
In this first Point and Figure chart of EBAY, below, we can see an upside price target of $44.58.
In this second Point and Figure chart, we used weekly close-only data to construct the X's and O's and this yields an upside price target of close to $58.
Bottom line strategy: EBAY is not extended, but traders should try to buy a dip towards $40 risking below $38 with $58 being our longer-term price target.