Two to Watch on Upward Moves

The level of market volatility is generally inversely proportional to trader confidence. While those who have short-term time horizons relish the range, they also know that the rug can be easily pulled out from under a position. Today I want to look at two stocks that are moving higher but which have nearby levels of solid support.

eBay (EBAY) has moved above a thick zone of support supplied by the confluence of the 50-, 150- and 200-day moving averages. This narrow band of moving averages has acted as support and resistance as the stock price has moved in a wide horizontal channel. The histograms at the top of the chart represent the weekly (orange) and daily (green) moving average convergence/divergence indicators, and the daily is making a bullish crossover. The relative strength index is crossing above its 21-period signal and centerlines. A daily close in upper candle range would confirm the breakout and offer a long entry point that has a good risk/reward....139 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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